Correlation Between Apollo Investment and PPG Industries
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and PPG Industries 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 PPG Industries 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 PPG Industries, you can compare the effects of market volatilities on Apollo Investment and PPG Industries 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 PPG Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and PPG Industries.
Diversification Opportunities for Apollo Investment and PPG Industries
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apollo and PPG is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and PPG Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPG Industries 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 PPG Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPG Industries has no effect on the direction of Apollo Investment i.e., Apollo Investment and PPG Industries go up and down completely randomly.
Pair Corralation between Apollo Investment and PPG Industries
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.95 times more return on investment than PPG Industries. However, Apollo Investment Corp is 1.05 times less risky than PPG Industries. It trades about 0.07 of its potential returns per unit of risk. PPG Industries is currently generating about 0.01 per unit of risk. If you would invest 870.00 in Apollo Investment Corp on September 2, 2024 and sell it today you would earn a total of 456.00 from holding Apollo Investment Corp or generate 52.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. PPG Industries
Performance |
| Timeline |
| Apollo Investment Corp |
| PPG Industries |
Apollo Investment and PPG Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and PPG Industries
The main advantage of trading using opposite Apollo Investment and PPG Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, PPG Industries 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 PPG Industries will offset losses from the drop in PPG Industries' long position.| Apollo Investment vs. Charter Communications | Apollo Investment vs. Data3 Limited | Apollo Investment vs. Hyrican Informationssysteme Aktiengesellschaft | Apollo Investment vs. DATAGROUP SE |
| PPG Industries vs. INDOFOOD AGRI RES | PPG Industries vs. Lifeway Foods | PPG Industries vs. Austevoll Seafood ASA | PPG Industries vs. Tyson Foods |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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