Correlation Between Apollo Food and Press Metal
Can any of the company-specific risk be diversified away by investing in both Apollo Food and Press Metal 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 Press Metal 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 Press Metal Bhd, you can compare the effects of market volatilities on Apollo Food and Press Metal 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 Press Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and Press Metal.
Diversification Opportunities for Apollo Food and Press Metal
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Press is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and Press Metal Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Press Metal 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 Press Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Press Metal Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and Press Metal go up and down completely randomly.
Pair Corralation between Apollo Food and Press Metal
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 1.32 times more return on investment than Press Metal. However, Apollo Food is 1.32 times more volatile than Press Metal Bhd. It trades about 0.06 of its potential returns per unit of risk. Press Metal Bhd is currently generating about 0.02 per unit of risk. If you would invest 501.00 in Apollo Food Holdings on November 3, 2024 and sell it today you would earn a total of 162.00 from holding Apollo Food Holdings or generate 32.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Food Holdings vs. Press Metal Bhd
Performance |
| Timeline |
| Apollo Food Holdings |
| Press Metal Bhd |
Apollo Food and Press Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Food and Press Metal
The main advantage of trading using opposite Apollo Food and Press Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, Press Metal 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 Press Metal will offset losses from the drop in Press Metal's long position.| Apollo Food vs. Farm Price Holdings | Apollo Food vs. RHB Bank Bhd | Apollo Food vs. Sunway Construction Group | Apollo Food vs. Bank Islam Malaysia |
| Press Metal vs. ONETECH SOLUTIONS HOLDINGS | Press Metal vs. Malayan Banking Bhd | Press Metal vs. Petronas Chemicals Group | Press Metal vs. Cloudpoint Technology 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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