Correlation Between Apollo Food and Cosmos Technology
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Cosmos 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 Cosmos 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 Cosmos Technology International, you can compare the effects of market volatilities on Apollo Food and Cosmos 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 Cosmos Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Cosmos Technology.
Diversification Opportunities for Apollo Food and Cosmos Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Cosmos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Cosmos Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmos Technology 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 Cosmos Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmos Technology has no effect on the direction of Apollo Food i.e., Apollo Food and Cosmos Technology go up and down completely randomly.
Pair Corralation between Apollo Food and Cosmos Technology
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.16 times more return on investment than Cosmos Technology. However, Apollo Food Holdings is 6.22 times less risky than Cosmos Technology. It trades about 0.09 of its potential returns per unit of risk. Cosmos Technology International is currently generating about -0.21 per unit of risk. If you would invest 659.00 in Apollo Food Holdings on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Apollo Food Holdings or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Food Holdings vs. Cosmos Technology Internationa
Performance |
| Timeline |
| Apollo Food Holdings |
| Cosmos Technology |
Apollo Food and Cosmos Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Cosmos Technology
The main advantage of trading using opposite Apollo Food and Cosmos Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Cosmos 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 Cosmos Technology will offset losses from the drop in Cosmos Technology's long position.| Apollo Food vs. YX Precious Metals | Apollo Food vs. Alliance Financial Group | Apollo Food vs. ES Ceramics Technology | Apollo Food vs. Berjaya Food Bhd |
| Cosmos Technology vs. Farm Price Holdings | Cosmos Technology vs. Uchi Technologies Bhd | Cosmos Technology vs. ES Ceramics Technology | Cosmos Technology vs. Rubberex M |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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