Correlation Between Apollo Food and Kobay Tech
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Kobay Tech 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 Kobay Tech 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 Kobay Tech Bhd, you can compare the effects of market volatilities on Apollo Food and Kobay Tech 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 Kobay Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Kobay Tech.
Diversification Opportunities for Apollo Food and Kobay Tech
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Kobay is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Kobay Tech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kobay Tech 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 Kobay Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kobay Tech Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and Kobay Tech go up and down completely randomly.
Pair Corralation between Apollo Food and Kobay Tech
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.71 times more return on investment than Kobay Tech. However, Apollo Food Holdings is 1.41 times less risky than Kobay Tech. It trades about 0.07 of its potential returns per unit of risk. Kobay Tech Bhd is currently generating about -0.03 per unit of risk. If you would invest 347.00 in Apollo Food Holdings on November 4, 2024 and sell it today you would earn a total of 316.00 from holding Apollo Food Holdings or generate 91.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Apollo Food Holdings vs. Kobay Tech Bhd
Performance |
| Timeline |
| Apollo Food Holdings |
| Kobay Tech Bhd |
Apollo Food and Kobay Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Kobay Tech
The main advantage of trading using opposite Apollo Food and Kobay Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Kobay Tech 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 Kobay Tech will offset losses from the drop in Kobay Tech's 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 |
| Kobay Tech vs. Al Aqar Healthcare | Kobay Tech vs. Cloudpoint Technology Berhad | Kobay Tech vs. YTL Hospitality REIT | Kobay Tech vs. BP Plastics Holding |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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