Correlation Between Apollo Investment and PVH Corp
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and PVH Corp 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 PVH Corp 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 PVH Corp, you can compare the effects of market volatilities on Apollo Investment and PVH Corp 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 PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and PVH Corp.
Diversification Opportunities for Apollo Investment and PVH Corp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apollo and PVH is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH Corp 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 PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of Apollo Investment i.e., Apollo Investment and PVH Corp go up and down completely randomly.
Pair Corralation between Apollo Investment and PVH Corp
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.45 times more return on investment than PVH Corp. However, Apollo Investment Corp is 2.23 times less risky than PVH Corp. It trades about 0.08 of its potential returns per unit of risk. PVH Corp is currently generating about -0.41 per unit of risk. If you would invest 1,319 in Apollo Investment Corp on November 7, 2024 and sell it today you would earn a total of 24.00 from holding Apollo Investment Corp or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Apollo Investment Corp vs. PVH Corp
Performance |
| Timeline |
| Apollo Investment Corp |
| PVH Corp |
Apollo Investment and PVH Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and PVH Corp
The main advantage of trading using opposite Apollo Investment and PVH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, PVH Corp 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 PVH Corp will offset losses from the drop in PVH Corp's long position.| Apollo Investment vs. FAST RETAIL ADR | Apollo Investment vs. Fast Retailing Co | Apollo Investment vs. Universal Health Realty | Apollo Investment vs. Retail Estates NV |
| PVH Corp vs. Meta Financial Group | PVH Corp vs. FIRST SHIP LEASE | PVH Corp vs. Erste Group Bank | PVH Corp vs. CullenFrost Bankers |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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