Correlation Between Apollo Food and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Aurelius Technologies 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 Aurelius Technologies 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 Aurelius Technologies Bhd, you can compare the effects of market volatilities on Apollo Food and Aurelius Technologies 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 Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Aurelius Technologies.
Diversification Opportunities for Apollo Food and Aurelius Technologies
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Aurelius is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies 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 Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Apollo Food and Aurelius Technologies
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.21 times more return on investment than Aurelius Technologies. However, Apollo Food Holdings is 4.69 times less risky than Aurelius Technologies. It trades about 0.09 of its potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about -0.3 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. Aurelius Technologies Bhd
Performance |
| Timeline |
| Apollo Food Holdings |
| Aurelius Technologies Bhd |
Apollo Food and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Aurelius Technologies
The main advantage of trading using opposite Apollo Food and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Aurelius Technologies 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' 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 |
| Aurelius Technologies vs. ViTrox Bhd | Aurelius Technologies vs. MI Technovation Bhd | Aurelius Technologies vs. Globetronics Tech Bhd | Aurelius Technologies vs. AirAsia X 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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