Correlation Between ONWARD MEDICAL and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both ONWARD MEDICAL and Apollo Investment 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 ONWARD MEDICAL and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONWARD MEDICAL BV and Apollo Investment Corp, you can compare the effects of market volatilities on ONWARD MEDICAL and Apollo Investment 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 ONWARD MEDICAL with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONWARD MEDICAL and Apollo Investment.
Diversification Opportunities for ONWARD MEDICAL and Apollo Investment
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ONWARD and Apollo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ONWARD MEDICAL BV and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and ONWARD MEDICAL 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 ONWARD MEDICAL BV are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of ONWARD MEDICAL i.e., ONWARD MEDICAL and Apollo Investment go up and down completely randomly.
Pair Corralation between ONWARD MEDICAL and Apollo Investment
Assuming the 90 days horizon ONWARD MEDICAL BV is expected to generate 5.41 times more return on investment than Apollo Investment. However, ONWARD MEDICAL is 5.41 times more volatile than Apollo Investment Corp. It trades about 0.05 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.05 per unit of risk. If you would invest 323.00 in ONWARD MEDICAL BV on September 4, 2024 and sell it today you would earn a total of 122.00 from holding ONWARD MEDICAL BV or generate 37.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONWARD MEDICAL BV vs. Apollo Investment Corp
Performance |
| Timeline |
| ONWARD MEDICAL BV |
| Apollo Investment Corp |
ONWARD MEDICAL and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONWARD MEDICAL and Apollo Investment
The main advantage of trading using opposite ONWARD MEDICAL and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONWARD MEDICAL position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| ONWARD MEDICAL vs. Mercedes Benz Group AG | ONWARD MEDICAL vs. BioNTech SE | ONWARD MEDICAL vs. Superior Plus Corp | ONWARD MEDICAL vs. NMI Holdings |
| Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. NMI Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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