Correlation Between Apollo Investment and SEALED AIR
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and SEALED AIR 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 SEALED AIR 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 SEALED AIR , you can compare the effects of market volatilities on Apollo Investment and SEALED AIR 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 SEALED AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and SEALED AIR.
Diversification Opportunities for Apollo Investment and SEALED AIR
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and SEALED is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and SEALED AIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALED AIR 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 SEALED AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEALED AIR has no effect on the direction of Apollo Investment i.e., Apollo Investment and SEALED AIR go up and down completely randomly.
Pair Corralation between Apollo Investment and SEALED AIR
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.72 times more return on investment than SEALED AIR. However, Apollo Investment Corp is 1.38 times less risky than SEALED AIR. It trades about 0.0 of its potential returns per unit of risk. SEALED AIR is currently generating about -0.01 per unit of risk. If you would invest 1,359 in Apollo Investment Corp on September 3, 2024 and sell it today you would lose (17.00) from holding Apollo Investment Corp or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. SEALED AIR
Performance |
| Timeline |
| Apollo Investment Corp |
| SEALED AIR |
Apollo Investment and SEALED AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and SEALED AIR
The main advantage of trading using opposite Apollo Investment and SEALED AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, SEALED AIR 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 SEALED AIR will offset losses from the drop in SEALED AIR's long position.| Apollo Investment vs. Morgan Stanley | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. Superior Plus Corp |
| SEALED AIR vs. KIMBALL ELECTRONICS | SEALED AIR vs. SMA Solar Technology | SEALED AIR vs. Align Technology | SEALED AIR vs. Vishay Intertechnology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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