Correlation Between Apollo Food and Petronas Gas
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Petronas Gas 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 Petronas Gas 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 Petronas Gas Bhd, you can compare the effects of market volatilities on Apollo Food and Petronas Gas 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 Petronas Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Petronas Gas.
Diversification Opportunities for Apollo Food and Petronas Gas
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and Petronas is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Petronas Gas Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petronas Gas 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 Petronas Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petronas Gas Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and Petronas Gas go up and down completely randomly.
Pair Corralation between Apollo Food and Petronas Gas
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 2.92 times more return on investment than Petronas Gas. However, Apollo Food is 2.92 times more volatile than Petronas Gas Bhd. It trades about 0.01 of its potential returns per unit of risk. Petronas Gas Bhd is currently generating about 0.0 per unit of risk. If you would invest 655.00 in Apollo Food Holdings on October 25, 2024 and sell it today you would earn a total of 8.00 from holding Apollo Food Holdings or generate 1.22% 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. Petronas Gas Bhd
Performance |
| Timeline |
| Apollo Food Holdings |
| Petronas Gas Bhd |
Apollo Food and Petronas Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Petronas Gas
The main advantage of trading using opposite Apollo Food and Petronas Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Petronas Gas 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 Petronas Gas will offset losses from the drop in Petronas Gas' long position.| Apollo Food vs. CPE Technology Berhad | Apollo Food vs. Homeritz Bhd | Apollo Food vs. Computer Forms Bhd | Apollo Food vs. Uchi Technologies Bhd |
| Petronas Gas vs. Eonmetall Group Bhd | Petronas Gas vs. PIE Industrial Bhd | Petronas Gas vs. Binasat Communications Bhd | Petronas Gas vs. FARM FRESH BERHAD |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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