Correlation Between Apollo Investment and Kroger
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Kroger 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 Kroger 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 The Kroger Co, you can compare the effects of market volatilities on Apollo Investment and Kroger 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 Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Kroger.
Diversification Opportunities for Apollo Investment and Kroger
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Kroger is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and The Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Kroger 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 Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Kroger has no effect on the direction of Apollo Investment i.e., Apollo Investment and Kroger go up and down completely randomly.
Pair Corralation between Apollo Investment and Kroger
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.94 times more return on investment than Kroger. However, Apollo Investment Corp is 1.07 times less risky than Kroger. It trades about 0.05 of its potential returns per unit of risk. The Kroger Co is currently generating about -0.21 per unit of risk. If you would invest 1,286 in Apollo Investment Corp on October 24, 2024 and sell it today you would earn a total of 12.00 from holding Apollo Investment Corp or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. The Kroger Co
Performance |
| Timeline |
| Apollo Investment Corp |
| The Kroger |
Apollo Investment and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Kroger
The main advantage of trading using opposite Apollo Investment and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.| Apollo Investment vs. Webster Financial | Apollo Investment vs. VIVA WINE GROUP | Apollo Investment vs. Sun Life Financial | Apollo Investment vs. NAKED WINES PLC |
| Kroger vs. Costco Wholesale Corp | Kroger vs. CanSino Biologics | Kroger vs. BJs Wholesale Club | Kroger vs. Apollo Investment Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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