Correlation Between Magni Tech and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Magni Tech and Apollo Food 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 Magni Tech and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magni Tech Industries and Apollo Food Holdings, you can compare the effects of market volatilities on Magni Tech and Apollo Food 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 Magni Tech with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magni Tech and Apollo Food.
Diversification Opportunities for Magni Tech and Apollo Food
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Magni and Apollo is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Magni Tech Industries and Apollo Food Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Food Holdings and Magni Tech 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 Magni Tech Industries are associated (or correlated) with Apollo Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Food Holdings has no effect on the direction of Magni Tech i.e., Magni Tech and Apollo Food go up and down completely randomly.
Pair Corralation between Magni Tech and Apollo Food
Assuming the 90 days trading horizon Magni Tech Industries is expected to under-perform the Apollo Food. In addition to that, Magni Tech is 3.48 times more volatile than Apollo Food Holdings. It trades about -0.18 of its total potential returns per unit of risk. Apollo Food Holdings is currently generating about 0.09 per unit of volatility. If you would invest 659.00 in Apollo Food Holdings on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Apollo Food Holdings or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magni Tech Industries vs. Apollo Food Holdings
Performance |
| Timeline |
| Magni Tech Industries |
| Apollo Food Holdings |
Magni Tech and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magni Tech and Apollo Food
The main advantage of trading using opposite Magni Tech and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magni Tech position performs unexpectedly, Apollo Food 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 Apollo Food will offset losses from the drop in Apollo Food's long position.| Magni Tech vs. CPE Technology Berhad | Magni Tech vs. Ho Hup Construction | Magni Tech vs. Sports Toto Berhad | Magni Tech vs. Homeritz Bhd |
| Apollo Food vs. YX Precious Metals | Apollo Food vs. Alliance Financial Group | Apollo Food vs. ES Ceramics Technology | Apollo Food vs. Berjaya Food 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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