Correlation Between Sapura Industrial and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Sapura Industrial 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 Sapura Industrial and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sapura Industrial Bhd and Apollo Food Holdings, you can compare the effects of market volatilities on Sapura Industrial 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 Sapura Industrial with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sapura Industrial and Apollo Food.
Diversification Opportunities for Sapura Industrial and Apollo Food
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sapura and Apollo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sapura Industrial 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 Sapura Industrial 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 Sapura Industrial 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 Sapura Industrial i.e., Sapura Industrial and Apollo Food go up and down completely randomly.
Pair Corralation between Sapura Industrial and Apollo Food
Assuming the 90 days trading horizon Sapura Industrial Bhd is expected to generate 3.03 times more return on investment than Apollo Food. However, Sapura Industrial is 3.03 times more volatile than Apollo Food Holdings. It trades about 0.08 of its potential returns per unit of risk. Apollo Food Holdings is currently generating about -0.23 per unit of risk. If you would invest 82.00 in Sapura Industrial Bhd on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Sapura Industrial Bhd or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sapura Industrial Bhd vs. Apollo Food Holdings
Performance |
| Timeline |
| Sapura Industrial Bhd |
| Apollo Food Holdings |
Sapura Industrial and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sapura Industrial and Apollo Food
The main advantage of trading using opposite Sapura Industrial and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sapura Industrial 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.| Sapura Industrial vs. Eversafe Rubber Bhd | Sapura Industrial vs. Minetech Resources Bhd | Sapura Industrial vs. Swift Haulage Bhd | Sapura Industrial vs. Insas Bhd |
| Apollo Food vs. Press Metal Bhd | Apollo Food vs. Southern Steel Bhd | Apollo Food vs. Sapura Industrial Bhd | Apollo Food vs. Choo Bee Metal |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |