Correlation Between Apollo Food and Kamdar Group
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Kamdar Group 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 Kamdar Group 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 Kamdar Group Bhd, you can compare the effects of market volatilities on Apollo Food and Kamdar Group 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 Kamdar Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Kamdar Group.
Diversification Opportunities for Apollo Food and Kamdar Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apollo and Kamdar is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Kamdar Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamdar Group 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 Kamdar Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamdar Group Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and Kamdar Group go up and down completely randomly.
Pair Corralation between Apollo Food and Kamdar Group
Assuming the 90 days trading horizon Apollo Food is expected to generate 3.08 times less return on investment than Kamdar Group. But when comparing it to its historical volatility, Apollo Food Holdings is 2.87 times less risky than Kamdar Group. It trades about 0.06 of its potential returns per unit of risk. Kamdar Group Bhd is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Kamdar Group Bhd on September 14, 2024 and sell it today you would earn a total of 15.00 from holding Kamdar Group Bhd or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Apollo Food Holdings vs. Kamdar Group Bhd
Performance |
| Timeline |
| Apollo Food Holdings |
| Kamdar Group Bhd |
Apollo Food and Kamdar Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Kamdar Group
The main advantage of trading using opposite Apollo Food and Kamdar Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Kamdar Group 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 Kamdar Group will offset losses from the drop in Kamdar Group's long position.| Apollo Food vs. Nestle Bhd | Apollo Food vs. British American Tobacco | Apollo Food vs. FARM FRESH BERHAD | Apollo Food vs. Kawan Food Bhd |
| Kamdar Group vs. Cosmos Technology International | Kamdar Group vs. Al Aqar Healthcare | Kamdar Group vs. Carlsberg Brewery Malaysia | Kamdar Group vs. IHH Healthcare 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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