Correlation Between Apollo Investment and Kingdee International
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Kingdee International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Apollo Investment and Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Investment Corp and Kingdee International Software, you can compare the effects of market volatilities on Apollo Investment and Kingdee International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Apollo Investment with a short position of Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Kingdee International.
Diversification Opportunities for Apollo Investment and Kingdee International
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apollo and Kingdee is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International and Apollo Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Apollo Investment Corp are associated (or correlated) with Kingdee International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingdee International has no effect on the direction of Apollo Investment i.e., Apollo Investment and Kingdee International go up and down completely randomly.
Pair Corralation between Apollo Investment and Kingdee International
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.57 times more return on investment than Kingdee International. However, Apollo Investment Corp is 1.76 times less risky than Kingdee International. It trades about -0.1 of its potential returns per unit of risk. Kingdee International Software is currently generating about -0.47 per unit of risk. If you would invest 1,292 in Apollo Investment Corp on October 12, 2024 and sell it today you would lose (28.00) from holding Apollo Investment Corp or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Kingdee International Software
Performance |
| Timeline |
| Apollo Investment Corp |
| Kingdee International |
Apollo Investment and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Kingdee International
The main advantage of trading using opposite Apollo Investment and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Kingdee International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kingdee International will offset losses from the drop in Kingdee International's long position.| Apollo Investment vs. X FAB Silicon Foundries | Apollo Investment vs. AIR PRODCHEMICALS | Apollo Investment vs. SILICON LABORATOR | Apollo Investment vs. China BlueChemical |
| Kingdee International vs. Apollo Investment Corp | Kingdee International vs. CITY OFFICE REIT | Kingdee International vs. HK Electric Investments | Kingdee International vs. NURAN WIRELESS INC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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