Correlation Between MyTech Group and Apollo Food
Can any of the company-specific risk be diversified away by investing in both MyTech 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 MyTech 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 MyTech Group Bhd and Apollo Food Holdings, you can compare the effects of market volatilities on MyTech 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 MyTech Group with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyTech Group and Apollo Food.
Diversification Opportunities for MyTech Group and Apollo Food
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between MyTech and Apollo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding MyTech 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 MyTech 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 MyTech 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 MyTech Group i.e., MyTech Group and Apollo Food go up and down completely randomly.
Pair Corralation between MyTech Group and Apollo Food
Assuming the 90 days trading horizon MyTech Group Bhd is expected to under-perform the Apollo Food. In addition to that, MyTech Group is 6.12 times more volatile than Apollo Food Holdings. It trades about -0.06 of its total potential returns per unit of risk. Apollo Food Holdings is currently generating about -0.31 per unit of volatility. If you would invest 656.00 in Apollo Food Holdings on September 5, 2024 and sell it today you would lose (23.00) from holding Apollo Food Holdings or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MyTech Group Bhd vs. Apollo Food Holdings
Performance |
| Timeline |
| MyTech Group Bhd |
| Apollo Food Holdings |
MyTech Group and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyTech Group and Apollo Food
The main advantage of trading using opposite MyTech Group and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyTech 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.| MyTech Group vs. Farm Price Holdings | MyTech Group vs. Dataprep Holdings Bhd | MyTech Group vs. Sports Toto Berhad | MyTech Group vs. Greatech Technology 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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