Correlation Between Apollo Investment and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and BJs Restaurants 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 BJs Restaurants 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 BJs Restaurants, you can compare the effects of market volatilities on Apollo Investment and BJs Restaurants 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 BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and BJs Restaurants.
Diversification Opportunities for Apollo Investment and BJs Restaurants
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and BJs is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants 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 BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of Apollo Investment i.e., Apollo Investment and BJs Restaurants go up and down completely randomly.
Pair Corralation between Apollo Investment and BJs Restaurants
Assuming the 90 days trading horizon Apollo Investment is expected to generate 3.5 times less return on investment than BJs Restaurants. But when comparing it to its historical volatility, Apollo Investment Corp is 2.66 times less risky than BJs Restaurants. It trades about 0.14 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,680 in BJs Restaurants on September 3, 2024 and sell it today you would earn a total of 900.00 from holding BJs Restaurants or generate 33.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Investment Corp vs. BJs Restaurants
Performance |
| Timeline |
| Apollo Investment Corp |
| BJs Restaurants |
Apollo Investment and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and BJs Restaurants
The main advantage of trading using opposite Apollo Investment and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' 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 |
| BJs Restaurants vs. Apollo Investment Corp | BJs Restaurants vs. REINET INVESTMENTS SCA | BJs Restaurants vs. ECHO INVESTMENT ZY | BJs Restaurants vs. MGIC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |