Correlation Between Apollo Investment and SERI INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and SERI INDUSTRIAL 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 SERI INDUSTRIAL 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 SERI INDUSTRIAL EO, you can compare the effects of market volatilities on Apollo Investment and SERI INDUSTRIAL 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 SERI INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and SERI INDUSTRIAL.
Diversification Opportunities for Apollo Investment and SERI INDUSTRIAL
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and SERI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO 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 SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of Apollo Investment i.e., Apollo Investment and SERI INDUSTRIAL go up and down completely randomly.
Pair Corralation between Apollo Investment and SERI INDUSTRIAL
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.42 times more return on investment than SERI INDUSTRIAL. However, Apollo Investment Corp is 2.38 times less risky than SERI INDUSTRIAL. It trades about 0.04 of its potential returns per unit of risk. SERI INDUSTRIAL EO is currently generating about -0.13 per unit of risk. If you would invest 1,294 in Apollo Investment Corp on October 29, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. SERI INDUSTRIAL EO
Performance |
| Timeline |
| Apollo Investment Corp |
| SERI INDUSTRIAL EO |
Apollo Investment and SERI INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and SERI INDUSTRIAL
The main advantage of trading using opposite Apollo Investment and SERI INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, SERI INDUSTRIAL 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 SERI INDUSTRIAL will offset losses from the drop in SERI INDUSTRIAL's long position.| Apollo Investment vs. Morgan Stanley | Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. Origin Agritech | Apollo Investment vs. Identiv |
| SERI INDUSTRIAL vs. MCEWEN MINING INC | SERI INDUSTRIAL vs. ELL ENVIRONHLDGS HD 0001 | SERI INDUSTRIAL vs. MOUNT GIBSON IRON | SERI INDUSTRIAL vs. GALENA MINING LTD |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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