Correlation Between Apollo Food and Rubberex M
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Rubberex M 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 Rubberex M 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 Rubberex M, you can compare the effects of market volatilities on Apollo Food and Rubberex M 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 Rubberex M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Rubberex M.
Diversification Opportunities for Apollo Food and Rubberex M
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Rubberex is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Rubberex M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubberex M 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 Rubberex M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubberex M has no effect on the direction of Apollo Food i.e., Apollo Food and Rubberex M go up and down completely randomly.
Pair Corralation between Apollo Food and Rubberex M
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.28 times more return on investment than Rubberex M. However, Apollo Food Holdings is 3.54 times less risky than Rubberex M. It trades about 0.14 of its potential returns per unit of risk. Rubberex M is currently generating about -0.15 per unit of risk. If you would invest 637.00 in Apollo Food Holdings on November 30, 2024 and sell it today you would earn a total of 38.00 from holding Apollo Food Holdings or generate 5.97% 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. Rubberex M
Performance |
| Timeline |
| Apollo Food Holdings |
| Rubberex M |
Apollo Food and Rubberex M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Rubberex M
The main advantage of trading using opposite Apollo Food and Rubberex M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Rubberex M 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 Rubberex M will offset losses from the drop in Rubberex M's long position.| Apollo Food vs. ES Ceramics Technology | Apollo Food vs. Rubberex M | Apollo Food vs. Dataprep Holdings Bhd | Apollo Food vs. Homeritz Bhd |
| Rubberex M vs. Privasia Technology Bhd | Rubberex M vs. SSF Home Group | Rubberex M vs. Cloudpoint Technology Berhad | Rubberex M vs. MClean Technologies 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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