Correlation Between PKSHA TECHNOLOGY and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and Apollo Medical 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 PKSHA TECHNOLOGY and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and Apollo Medical Holdings, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and Apollo Medical 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 PKSHA TECHNOLOGY with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and Apollo Medical.
Diversification Opportunities for PKSHA TECHNOLOGY and Apollo Medical
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PKSHA and Apollo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and Apollo Medical go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and Apollo Medical
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.59 times more return on investment than Apollo Medical. However, PKSHA TECHNOLOGY is 1.59 times more volatile than Apollo Medical Holdings. It trades about -0.3 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about -0.91 per unit of risk. If you would invest 2,660 in PKSHA TECHNOLOGY INC on October 9, 2024 and sell it today you would lose (300.00) from holding PKSHA TECHNOLOGY INC or give up 11.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. Apollo Medical Holdings
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| Apollo Medical Holdings |
PKSHA TECHNOLOGY and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and Apollo Medical
The main advantage of trading using opposite PKSHA TECHNOLOGY and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, Apollo Medical 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 Medical will offset losses from the drop in Apollo Medical's long position.| PKSHA TECHNOLOGY vs. Apollo Investment Corp | PKSHA TECHNOLOGY vs. Yuexiu Transport Infrastructure | PKSHA TECHNOLOGY vs. CHRYSALIS INVESTMENTS LTD | PKSHA TECHNOLOGY vs. Transport International Holdings |
| Apollo Medical vs. EIDESVIK OFFSHORE NK | Apollo Medical vs. Heidelberg Materials AG | Apollo Medical vs. PT Wintermar Offshore | Apollo Medical vs. SANOK RUBBER ZY |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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