Correlation Between Apollo Investment and SVENSKA CELLULO
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and SVENSKA CELLULO 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 SVENSKA CELLULO 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 SVENSKA CELLULO B , you can compare the effects of market volatilities on Apollo Investment and SVENSKA CELLULO 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 SVENSKA CELLULO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and SVENSKA CELLULO.
Diversification Opportunities for Apollo Investment and SVENSKA CELLULO
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and SVENSKA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and SVENSKA CELLULO B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVENSKA CELLULO B 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 SVENSKA CELLULO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVENSKA CELLULO B has no effect on the direction of Apollo Investment i.e., Apollo Investment and SVENSKA CELLULO go up and down completely randomly.
Pair Corralation between Apollo Investment and SVENSKA CELLULO
Assuming the 90 days trading horizon Apollo Investment is expected to generate 1.23 times less return on investment than SVENSKA CELLULO. But when comparing it to its historical volatility, Apollo Investment Corp is 1.73 times less risky than SVENSKA CELLULO. It trades about 0.07 of its potential returns per unit of risk. SVENSKA CELLULO B is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 777.00 in SVENSKA CELLULO B on September 14, 2024 and sell it today you would earn a total of 455.00 from holding SVENSKA CELLULO B or generate 58.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Apollo Investment Corp vs. SVENSKA CELLULO B
Performance |
| Timeline |
| Apollo Investment Corp |
| SVENSKA CELLULO B |
Apollo Investment and SVENSKA CELLULO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and SVENSKA CELLULO
The main advantage of trading using opposite Apollo Investment and SVENSKA CELLULO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, SVENSKA CELLULO 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 SVENSKA CELLULO will offset losses from the drop in SVENSKA CELLULO's long position.| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
| SVENSKA CELLULO vs. Media and Games | SVENSKA CELLULO vs. WisdomTree Investments | SVENSKA CELLULO vs. Apollo Investment Corp | SVENSKA CELLULO vs. International Game Technology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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