Correlation Between Apollo Investment and Odyssey Marine
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Odyssey Marine 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 Odyssey Marine 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 Odyssey Marine Exploration, you can compare the effects of market volatilities on Apollo Investment and Odyssey Marine 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 Odyssey Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Odyssey Marine.
Diversification Opportunities for Apollo Investment and Odyssey Marine
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Odyssey is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Odyssey Marine Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssey Marine Explo 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 Odyssey Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssey Marine Explo has no effect on the direction of Apollo Investment i.e., Apollo Investment and Odyssey Marine go up and down completely randomly.
Pair Corralation between Apollo Investment and Odyssey Marine
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.07 times more return on investment than Odyssey Marine. However, Apollo Investment Corp is 14.37 times less risky than Odyssey Marine. It trades about 0.17 of its potential returns per unit of risk. Odyssey Marine Exploration is currently generating about -0.17 per unit of risk. If you would invest 1,180 in Apollo Investment Corp on September 12, 2024 and sell it today you would earn a total of 123.00 from holding Apollo Investment Corp or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Apollo Investment Corp vs. Odyssey Marine Exploration
Performance |
| Timeline |
| Apollo Investment Corp |
| Odyssey Marine Explo |
Apollo Investment and Odyssey Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Odyssey Marine
The main advantage of trading using opposite Apollo Investment and Odyssey Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Odyssey Marine 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 Odyssey Marine will offset losses from the drop in Odyssey Marine's long position.| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
| Odyssey Marine vs. Virtus Investment Partners | Odyssey Marine vs. PennantPark Investment | Odyssey Marine vs. Apollo Investment Corp | Odyssey Marine vs. MOLSON RS BEVERAGE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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