Correlation Between Apollo Investment and Universal Display
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Universal Display 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 Universal Display 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 Universal Display, you can compare the effects of market volatilities on Apollo Investment and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Universal Display.
Diversification Opportunities for Apollo Investment and Universal Display
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and Universal is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of Apollo Investment i.e., Apollo Investment and Universal Display go up and down completely randomly.
Pair Corralation between Apollo Investment and Universal Display
Assuming the 90 days trading horizon Apollo Investment is expected to generate 1.01 times less return on investment than Universal Display. In addition to that, Apollo Investment is 1.04 times more volatile than Universal Display. It trades about 0.09 of its total potential returns per unit of risk. Universal Display is currently generating about 0.1 per unit of volatility. If you would invest 14,205 in Universal Display on November 1, 2024 and sell it today you would earn a total of 325.00 from holding Universal Display or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. Universal Display
Performance |
| Timeline |
| Apollo Investment Corp |
| Universal Display |
Apollo Investment and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Universal Display
The main advantage of trading using opposite Apollo Investment and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| Apollo Investment vs. GAMESTOP | Apollo Investment vs. MOVIE GAMES SA | Apollo Investment vs. TEN SQUARE GAMES | Apollo Investment vs. Corporate Office Properties |
| Universal Display vs. PARKEN Sport Entertainment | Universal Display vs. CNVISION MEDIA | Universal Display vs. Apollo Investment Corp | Universal Display vs. PennantPark Investment |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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