Correlation Between Apollo Food and YX Precious
Can any of the company-specific risk be diversified away by investing in both Apollo Food and YX Precious 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 YX Precious 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 YX Precious Metals, you can compare the effects of market volatilities on Apollo Food and YX Precious 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 YX Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and YX Precious.
Diversification Opportunities for Apollo Food and YX Precious
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apollo and 0250 is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and YX Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YX Precious Metals 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 YX Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YX Precious Metals has no effect on the direction of Apollo Food i.e., Apollo Food and YX Precious go up and down completely randomly.
Pair Corralation between Apollo Food and YX Precious
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.21 times more return on investment than YX Precious. However, Apollo Food Holdings is 4.72 times less risky than YX Precious. It trades about -0.19 of its potential returns per unit of risk. YX Precious Metals is currently generating about -0.25 per unit of risk. If you would invest 660.00 in Apollo Food Holdings on August 28, 2024 and sell it today you would lose (12.00) from holding Apollo Food Holdings or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Food Holdings vs. YX Precious Metals
Performance |
| Timeline |
| Apollo Food Holdings |
| YX Precious Metals |
Apollo Food and YX Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and YX Precious
The main advantage of trading using opposite Apollo Food and YX Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, YX Precious 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 YX Precious will offset losses from the drop in YX Precious' long position.| Apollo Food vs. Duopharma Biotech Bhd | Apollo Food vs. Farm Price Holdings | Apollo Food vs. PMB Technology Bhd | Apollo Food vs. Kawan Food Bhd |
| YX Precious vs. Malayan Banking Bhd | YX Precious vs. Public Bank Bhd | YX Precious vs. Petronas Chemicals Group | YX Precious vs. Tenaga Nasional 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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