Correlation Between Apollo Investment and Martin Marietta
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Martin Marietta 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 Martin Marietta 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 Martin Marietta Materials, you can compare the effects of market volatilities on Apollo Investment and Martin Marietta 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 Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Martin Marietta.
Diversification Opportunities for Apollo Investment and Martin Marietta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and Martin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials 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 Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of Apollo Investment i.e., Apollo Investment and Martin Marietta go up and down completely randomly.
Pair Corralation between Apollo Investment and Martin Marietta
If you would invest 1,319 in Apollo Investment Corp on November 7, 2024 and sell it today you would earn a total of 24.00 from holding Apollo Investment Corp or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Apollo Investment Corp vs. Martin Marietta Materials
Performance |
| Timeline |
| Apollo Investment Corp |
| Martin Marietta Materials |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apollo Investment and Martin Marietta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Martin Marietta
The main advantage of trading using opposite Apollo Investment and Martin Marietta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Martin Marietta 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 Martin Marietta will offset losses from the drop in Martin Marietta's long position.| Apollo Investment vs. FAST RETAIL ADR | Apollo Investment vs. Fast Retailing Co | Apollo Investment vs. Universal Health Realty | Apollo Investment vs. Retail Estates NV |
| Martin Marietta vs. HYATT HOTELS A | Martin Marietta vs. MCEWEN MINING INC | Martin Marietta vs. Sunstone Hotel Investors | Martin Marietta vs. Calibre Mining 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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