Correlation Between Apollo Food and Genetec Technology
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Genetec Technology 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 Food and Genetec Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Food Holdings and Genetec Technology Bhd, you can compare the effects of market volatilities on Apollo Food and Genetec Technology 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 Food with a short position of Genetec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Genetec Technology.
Diversification Opportunities for Apollo Food and Genetec Technology
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Genetec is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Genetec Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genetec Technology Bhd and Apollo Food 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 Food Holdings are associated (or correlated) with Genetec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genetec Technology Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and Genetec Technology go up and down completely randomly.
Pair Corralation between Apollo Food and Genetec Technology
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.51 times more return on investment than Genetec Technology. However, Apollo Food Holdings is 1.94 times less risky than Genetec Technology. It trades about 0.09 of its potential returns per unit of risk. Genetec Technology Bhd is currently generating about -0.03 per unit of risk. If you would invest 366.00 in Apollo Food Holdings on August 31, 2024 and sell it today you would earn a total of 273.00 from holding Apollo Food Holdings or generate 74.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Apollo Food Holdings vs. Genetec Technology Bhd
Performance |
| Timeline |
| Apollo Food Holdings |
| Genetec Technology Bhd |
Apollo Food and Genetec Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Genetec Technology
The main advantage of trading using opposite Apollo Food and Genetec Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Genetec Technology 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 Genetec Technology will offset losses from the drop in Genetec Technology's long position.| Apollo Food vs. Senheng New Retail | Apollo Food vs. Cengild Medical Berhad | Apollo Food vs. Press Metal Bhd | Apollo Food vs. TAS Offshore Bhd |
| Genetec Technology vs. Greatech Technology Bhd | Genetec Technology vs. PIE Industrial Bhd | Genetec Technology vs. Supercomnet Technologies Bhd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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