Correlation Between Eonmetall Group and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Eonmetall Group 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 Eonmetall Group and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eonmetall Group Bhd and Apollo Food Holdings, you can compare the effects of market volatilities on Eonmetall Group 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 Eonmetall Group with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eonmetall Group and Apollo Food.
Diversification Opportunities for Eonmetall Group and Apollo Food
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eonmetall and Apollo is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eonmetall Group Bhd 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 Eonmetall Group 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 Eonmetall Group Bhd 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 Eonmetall Group i.e., Eonmetall Group and Apollo Food go up and down completely randomly.
Pair Corralation between Eonmetall Group and Apollo Food
Assuming the 90 days trading horizon Eonmetall Group Bhd is expected to under-perform the Apollo Food. In addition to that, Eonmetall Group is 6.77 times more volatile than Apollo Food Holdings. It trades about -0.09 of its total potential returns per unit of risk. Apollo Food Holdings is currently generating about -0.16 per unit of volatility. If you would invest 660.00 in Apollo Food Holdings on August 26, 2024 and sell it today you would lose (10.00) from holding Apollo Food Holdings or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Eonmetall Group Bhd vs. Apollo Food Holdings
Performance |
| Timeline |
| Eonmetall Group Bhd |
| Apollo Food Holdings |
Eonmetall Group and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eonmetall Group and Apollo Food
The main advantage of trading using opposite Eonmetall Group and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eonmetall Group 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.| Eonmetall Group vs. Awanbiru Technology Bhd | Eonmetall Group vs. Computer Forms Bhd | Eonmetall Group vs. Nova Wellness Group | Eonmetall Group vs. Tex Cycle Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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