Correlation Between Apollo Food and Choo Bee
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Choo Bee 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 Choo Bee 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 Choo Bee Metal, you can compare the effects of market volatilities on Apollo Food and Choo Bee 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 Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Choo Bee.
Diversification Opportunities for Apollo Food and Choo Bee
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and Choo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal 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 Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of Apollo Food i.e., Apollo Food and Choo Bee go up and down completely randomly.
Pair Corralation between Apollo Food and Choo Bee
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.99 times more return on investment than Choo Bee. However, Apollo Food Holdings is 1.01 times less risky than Choo Bee. It trades about 0.08 of its potential returns per unit of risk. Choo Bee Metal is currently generating about -0.02 per unit of risk. If you would invest 337.00 in Apollo Food Holdings on August 30, 2024 and sell it today you would earn a total of 307.00 from holding Apollo Food Holdings or generate 91.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Apollo Food Holdings vs. Choo Bee Metal
Performance |
| Timeline |
| Apollo Food Holdings |
| Choo Bee Metal |
Apollo Food and Choo Bee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Choo Bee
The main advantage of trading using opposite Apollo Food and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee's long position.| Apollo Food vs. Aurelius Technologies Bhd | Apollo Food vs. Minetech Resources Bhd | Apollo Food vs. Pantech Group Holdings | Apollo Food vs. Resintech 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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