Correlation Between VARIOUS EATERIES and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES 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 VARIOUS EATERIES and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and Apollo Investment Corp, you can compare the effects of market volatilities on VARIOUS EATERIES 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 VARIOUS EATERIES with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and Apollo Investment.
Diversification Opportunities for VARIOUS EATERIES and Apollo Investment
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VARIOUS and Apollo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS 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 VARIOUS EATERIES i.e., VARIOUS EATERIES and Apollo Investment go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and Apollo Investment
Assuming the 90 days horizon VARIOUS EATERIES LS is expected to under-perform the Apollo Investment. But the stock apears to be less risky and, when comparing its historical volatility, VARIOUS EATERIES LS is 1.08 times less risky than Apollo Investment. The stock trades about -0.25 of its potential returns per unit of risk. The Apollo Investment Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,286 in Apollo Investment Corp on October 23, 2024 and sell it today you would earn a total of 17.00 from holding Apollo Investment Corp or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. Apollo Investment Corp
Performance |
| Timeline |
| VARIOUS EATERIES |
| Apollo Investment Corp |
VARIOUS EATERIES and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and Apollo Investment
The main advantage of trading using opposite VARIOUS EATERIES and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES 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.| VARIOUS EATERIES vs. ZURICH INSURANCE GROUP | VARIOUS EATERIES vs. LIFENET INSURANCE CO | VARIOUS EATERIES vs. Insurance Australia Group | VARIOUS EATERIES vs. MGIC INVESTMENT |
| Apollo Investment vs. VELA TECHNOLPLC LS 0001 | Apollo Investment vs. Bio Techne Corp | Apollo Investment vs. Commercial Vehicle Group | Apollo Investment vs. CarsalesCom |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |