Correlation Between Apollo Investment and Silicon Motion
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Silicon Motion 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 Silicon Motion 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 Silicon Motion Technology, you can compare the effects of market volatilities on Apollo Investment and Silicon Motion 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 Silicon Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Silicon Motion.
Diversification Opportunities for Apollo Investment and Silicon Motion
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apollo and Silicon is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Silicon Motion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Motion Technology 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 Silicon Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Motion Technology has no effect on the direction of Apollo Investment i.e., Apollo Investment and Silicon Motion go up and down completely randomly.
Pair Corralation between Apollo Investment and Silicon Motion
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.48 times more return on investment than Silicon Motion. However, Apollo Investment Corp is 2.06 times less risky than Silicon Motion. It trades about -0.01 of its potential returns per unit of risk. Silicon Motion Technology is currently generating about -0.09 per unit of risk. If you would invest 1,310 in Apollo Investment Corp on October 13, 2024 and sell it today you would lose (46.00) from holding Apollo Investment Corp or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Silicon Motion Technology
Performance |
| Timeline |
| Apollo Investment Corp |
| Silicon Motion Technology |
Apollo Investment and Silicon Motion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Silicon Motion
The main advantage of trading using opposite Apollo Investment and Silicon Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Silicon Motion 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 Silicon Motion will offset losses from the drop in Silicon Motion'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 |
| Silicon Motion vs. ONWARD MEDICAL BV | Silicon Motion vs. INDOFOOD AGRI RES | Silicon Motion vs. TYSON FOODS A | Silicon Motion vs. Lifeway 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |