Correlation Between Apollo Investment and BRF SA
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and BRF SA 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 BRF SA 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 BRF SA, you can compare the effects of market volatilities on Apollo Investment and BRF SA 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 BRF SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and BRF SA.
Diversification Opportunities for Apollo Investment and BRF SA
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and BRF is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and BRF SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRF SA 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 BRF SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRF SA has no effect on the direction of Apollo Investment i.e., Apollo Investment and BRF SA go up and down completely randomly.
Pair Corralation between Apollo Investment and BRF SA
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.47 times more return on investment than BRF SA. However, Apollo Investment Corp is 2.12 times less risky than BRF SA. It trades about -0.1 of its potential returns per unit of risk. BRF SA is currently generating about -0.43 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. BRF SA
Performance |
| Timeline |
| Apollo Investment Corp |
| BRF SA |
Apollo Investment and BRF SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and BRF SA
The main advantage of trading using opposite Apollo Investment and BRF SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, BRF SA 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 BRF SA will offset losses from the drop in BRF SA'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 |
| BRF SA vs. Thai Beverage Public | BRF SA vs. National Beverage Corp | BRF SA vs. Austevoll Seafood ASA | BRF SA 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |