Correlation Between Apollo Investment and Cleanaway Waste
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Cleanaway Waste 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 Cleanaway Waste 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 Cleanaway Waste Management, you can compare the effects of market volatilities on Apollo Investment and Cleanaway Waste 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 Cleanaway Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Cleanaway Waste.
Diversification Opportunities for Apollo Investment and Cleanaway Waste
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apollo and Cleanaway is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana 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 Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of Apollo Investment i.e., Apollo Investment and Cleanaway Waste go up and down completely randomly.
Pair Corralation between Apollo Investment and Cleanaway Waste
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.61 times more return on investment than Cleanaway Waste. However, Apollo Investment Corp is 1.63 times less risky than Cleanaway Waste. It trades about 0.31 of its potential returns per unit of risk. Cleanaway Waste Management is currently generating about 0.12 per unit of risk. If you would invest 1,227 in Apollo Investment Corp on September 2, 2024 and sell it today you would earn a total of 99.00 from holding Apollo Investment Corp or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Cleanaway Waste Management
Performance |
| Timeline |
| Apollo Investment Corp |
| Cleanaway Waste Mana |
Apollo Investment and Cleanaway Waste Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Cleanaway Waste
The main advantage of trading using opposite Apollo Investment and Cleanaway Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Cleanaway Waste 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 Cleanaway Waste will offset losses from the drop in Cleanaway Waste's long position.| Apollo Investment vs. Charter Communications | Apollo Investment vs. Data3 Limited | Apollo Investment vs. Hyrican Informationssysteme Aktiengesellschaft | Apollo Investment vs. DATAGROUP SE |
| Cleanaway Waste vs. Thai Beverage Public | Cleanaway Waste vs. Elmos Semiconductor SE | Cleanaway Waste vs. NetSol Technologies | Cleanaway Waste vs. Collins Foods Limited |
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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