Correlation Between Apollo Food and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Swift Haulage 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 Swift Haulage 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 Swift Haulage Bhd, you can compare the effects of market volatilities on Apollo Food and Swift Haulage 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 Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Swift Haulage.
Diversification Opportunities for Apollo Food and Swift Haulage
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Swift is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Swift Haulage Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Haulage 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 Swift Haulage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Haulage Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and Swift Haulage go up and down completely randomly.
Pair Corralation between Apollo Food and Swift Haulage
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.51 times more return on investment than Swift Haulage. However, Apollo Food Holdings is 1.97 times less risky than Swift Haulage. It trades about 0.11 of its potential returns per unit of risk. Swift Haulage Bhd is currently generating about -0.08 per unit of risk. If you would invest 662.00 in Apollo Food Holdings on November 28, 2024 and sell it today you would earn a total of 9.00 from holding Apollo Food Holdings or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Apollo Food Holdings vs. Swift Haulage Bhd
Performance |
| Timeline |
| Apollo Food Holdings |
| Swift Haulage Bhd |
Apollo Food and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Swift Haulage
The main advantage of trading using opposite Apollo Food and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Swift Haulage 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 Swift Haulage will offset losses from the drop in Swift Haulage's long position.| Apollo Food vs. Sports Toto Berhad | Apollo Food vs. Choo Bee Metal | Apollo Food vs. Nova Wellness Group | Apollo Food vs. Press Metal Bhd |
| Swift Haulage vs. Supercomnet Technologies Bhd | Swift Haulage vs. CB Industrial Product | Swift Haulage vs. MClean Technologies Bhd | Swift Haulage vs. Shangri La Hotels |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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