Correlation Between Apollo Investment and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and BANK MANDIRI 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 BANK MANDIRI 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 BANK MANDIRI, you can compare the effects of market volatilities on Apollo Investment and BANK MANDIRI 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 BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and BANK MANDIRI.
Diversification Opportunities for Apollo Investment and BANK MANDIRI
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and BANK is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI 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 BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of Apollo Investment i.e., Apollo Investment and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Apollo Investment and BANK MANDIRI
Assuming the 90 days trading horizon Apollo Investment is expected to generate 3.95 times less return on investment than BANK MANDIRI. In addition to that, Apollo Investment is 1.39 times more volatile than BANK MANDIRI. It trades about 0.06 of its total potential returns per unit of risk. BANK MANDIRI is currently generating about 0.35 per unit of volatility. If you would invest 32.00 in BANK MANDIRI on October 22, 2024 and sell it today you would earn a total of 2.00 from holding BANK MANDIRI or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Apollo Investment Corp vs. BANK MANDIRI
Performance |
| Timeline |
| Apollo Investment Corp |
| BANK MANDIRI |
Apollo Investment and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and BANK MANDIRI
The main advantage of trading using opposite Apollo Investment and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| Apollo Investment vs. GigaMedia | Apollo Investment vs. GAMESTOP | Apollo Investment vs. QINGCI GAMES INC | Apollo Investment vs. Games Workshop Group |
| BANK MANDIRI vs. Scottish Mortgage Investment | BANK MANDIRI vs. GUARDANT HEALTH CL | BANK MANDIRI vs. Apollo Investment Corp | BANK MANDIRI vs. EPSILON HEALTHCARE 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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