Correlation Between PKSHA TECHNOLOGY and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and Apollo Investment 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 Investment 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 Investment Corp, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and Apollo Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and Apollo Investment.
Diversification Opportunities for PKSHA TECHNOLOGY and Apollo Investment
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PKSHA and Apollo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and Apollo Investment go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and Apollo Investment
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to under-perform the Apollo Investment. In addition to that, PKSHA TECHNOLOGY is 1.42 times more volatile than Apollo Investment Corp. It trades about -0.29 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.06 per unit of volatility. If you would invest 1,283 in Apollo Investment Corp on October 18, 2024 and sell it today you would earn a total of 18.00 from holding Apollo Investment Corp or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. Apollo Investment Corp
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| Apollo Investment Corp |
PKSHA TECHNOLOGY and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and Apollo Investment
The main advantage of trading using opposite PKSHA TECHNOLOGY and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, Apollo Investment 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 Investment will offset losses from the drop in Apollo Investment's long position.| PKSHA TECHNOLOGY vs. Computershare Limited | PKSHA TECHNOLOGY vs. ecotel communication ag | PKSHA TECHNOLOGY vs. Hemisphere Energy Corp | PKSHA TECHNOLOGY vs. BRIT AMER TOBACCO |
| Apollo Investment vs. Broadwind | Apollo Investment vs. PKSHA TECHNOLOGY INC | Apollo Investment vs. FANDIFI TECHNOLOGY P | Apollo Investment vs. NAGOYA RAILROAD |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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