Correlation Between Apollo Food and Public Bank
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Public Bank 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 Public Bank 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 Public Bank Bhd, you can compare the effects of market volatilities on Apollo Food and Public Bank 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 Public Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Public Bank.
Diversification Opportunities for Apollo Food and Public Bank
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and Public is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Public Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Bank 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 Public Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Bank Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and Public Bank go up and down completely randomly.
Pair Corralation between Apollo Food and Public Bank
Assuming the 90 days trading horizon Apollo Food Holdings is expected to under-perform the Public Bank. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Food Holdings is 1.73 times less risky than Public Bank. The stock trades about -0.26 of its potential returns per unit of risk. The Public Bank Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 446.00 in Public Bank Bhd on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Public Bank Bhd or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Food Holdings vs. Public Bank Bhd
Performance |
| Timeline |
| Apollo Food Holdings |
| Public Bank Bhd |
Apollo Food and Public Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Public Bank
The main advantage of trading using opposite Apollo Food and Public Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Public Bank 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 Public Bank will offset losses from the drop in Public Bank's long position.The idea behind Apollo Food Holdings and Public Bank Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Public Bank vs. YX Precious Metals | Public Bank vs. Nova Wellness Group | Public Bank vs. Tex Cycle Technology | Public Bank vs. Lyc Healthcare 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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