Correlation Between Apollo Food and SSF Home
Can any of the company-specific risk be diversified away by investing in both Apollo Food and SSF Home 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 SSF Home 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 SSF Home Group, you can compare the effects of market volatilities on Apollo Food and SSF Home 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 SSF Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and SSF Home.
Diversification Opportunities for Apollo Food and SSF Home
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and SSF is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and SSF Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSF Home Group 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 SSF Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSF Home Group has no effect on the direction of Apollo Food i.e., Apollo Food and SSF Home go up and down completely randomly.
Pair Corralation between Apollo Food and SSF Home
Assuming the 90 days trading horizon Apollo Food Holdings is expected to under-perform the SSF Home. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Food Holdings is 1.69 times less risky than SSF Home. The stock trades about -0.03 of its potential returns per unit of risk. The SSF Home Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 28.00 in SSF Home Group on September 3, 2024 and sell it today you would earn a total of 6.00 from holding SSF Home Group or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Food Holdings vs. SSF Home Group
Performance |
| Timeline |
| Apollo Food Holdings |
| SSF Home Group |
Apollo Food and SSF Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and SSF Home
The main advantage of trading using opposite Apollo Food and SSF Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, SSF Home 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 SSF Home will offset losses from the drop in SSF Home's long position.| Apollo Food vs. Press Metal Bhd | Apollo Food vs. Southern Steel Bhd | Apollo Food vs. Sapura Industrial Bhd | Apollo Food vs. Choo Bee Metal |
| SSF Home vs. Choo Bee Metal | SSF Home vs. EA Technique M | SSF Home vs. Resintech Bhd | SSF Home vs. Minetech Resources 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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