Correlation Between Apollo Investment and Microchip Technology
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Microchip Technology 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 Microchip Technology 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 Microchip Technology Incorporated, you can compare the effects of market volatilities on Apollo Investment and Microchip Technology 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 Microchip Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Microchip Technology.
Diversification Opportunities for Apollo Investment and Microchip Technology
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and Microchip is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Microchip Technology Incorpora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microchip Technology 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 Microchip Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microchip Technology has no effect on the direction of Apollo Investment i.e., Apollo Investment and Microchip Technology go up and down completely randomly.
Pair Corralation between Apollo Investment and Microchip Technology
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.6 times more return on investment than Microchip Technology. However, Apollo Investment Corp is 1.67 times less risky than Microchip Technology. It trades about 0.26 of its potential returns per unit of risk. Microchip Technology Incorporated is currently generating about -0.23 per unit of risk. If you would invest 1,234 in Apollo Investment Corp on August 31, 2024 and sell it today you would earn a total of 95.00 from holding Apollo Investment Corp or generate 7.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Microchip Technology Incorpora
Performance |
| Timeline |
| Apollo Investment Corp |
| Microchip Technology |
Apollo Investment and Microchip Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Microchip Technology
The main advantage of trading using opposite Apollo Investment and Microchip Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Microchip Technology 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 Microchip Technology will offset losses from the drop in Microchip Technology's long position.| Apollo Investment vs. Morgan Stanley | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. NMI Holdings |
| Microchip Technology vs. Siamgas And Petrochemicals | Microchip Technology vs. ULTRA CLEAN HLDGS | Microchip Technology vs. Datang International Power | Microchip Technology vs. Ultra Clean Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |