Correlation Between Apollo Food and YTL Hospitality
Can any of the company-specific risk be diversified away by investing in both Apollo Food and YTL Hospitality 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 YTL Hospitality 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 YTL Hospitality REIT, you can compare the effects of market volatilities on Apollo Food and YTL Hospitality 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 YTL Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and YTL Hospitality.
Diversification Opportunities for Apollo Food and YTL Hospitality
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apollo and YTL is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and YTL Hospitality REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YTL Hospitality REIT 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 YTL Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YTL Hospitality REIT has no effect on the direction of Apollo Food i.e., Apollo Food and YTL Hospitality go up and down completely randomly.
Pair Corralation between Apollo Food and YTL Hospitality
Assuming the 90 days trading horizon Apollo Food Holdings is expected to under-perform the YTL Hospitality. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Food Holdings is 1.58 times less risky than YTL Hospitality. The stock trades about -0.23 of its potential returns per unit of risk. The YTL Hospitality REIT is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 120.00 in YTL Hospitality REIT on September 3, 2024 and sell it today you would earn a total of 0.00 from holding YTL Hospitality REIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Food Holdings vs. YTL Hospitality REIT
Performance |
| Timeline |
| Apollo Food Holdings |
| YTL Hospitality REIT |
Apollo Food and YTL Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and YTL Hospitality
The main advantage of trading using opposite Apollo Food and YTL Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, YTL Hospitality 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 YTL Hospitality will offset losses from the drop in YTL Hospitality'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 |
| YTL Hospitality vs. Minetech Resources Bhd | YTL Hospitality vs. Swift Haulage Bhd | YTL Hospitality vs. Insas Bhd | YTL Hospitality vs. Bina Darulaman 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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