Correlation Between Suntory Beverage and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Suntory Beverage 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 Suntory Beverage and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suntory Beverage Food and Apollo Investment Corp, you can compare the effects of market volatilities on Suntory Beverage 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 Suntory Beverage with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntory Beverage and Apollo Investment.
Diversification Opportunities for Suntory Beverage and Apollo Investment
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Suntory and Apollo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Suntory Beverage Food 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 Suntory Beverage 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 Suntory Beverage Food 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 Suntory Beverage i.e., Suntory Beverage and Apollo Investment go up and down completely randomly.
Pair Corralation between Suntory Beverage and Apollo Investment
Assuming the 90 days horizon Suntory Beverage is expected to generate 1.29 times less return on investment than Apollo Investment. In addition to that, Suntory Beverage is 1.54 times more volatile than Apollo Investment Corp. It trades about 0.01 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.03 per unit of volatility. If you would invest 1,269 in Apollo Investment Corp on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Apollo Investment Corp or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suntory Beverage Food vs. Apollo Investment Corp
Performance |
| Timeline |
| Suntory Beverage Food |
| Apollo Investment Corp |
Suntory Beverage and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suntory Beverage and Apollo Investment
The main advantage of trading using opposite Suntory Beverage and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntory Beverage 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.| Suntory Beverage vs. Sporttotal AG | Suntory Beverage vs. PARKEN Sport Entertainment | Suntory Beverage vs. USWE SPORTS AB | Suntory Beverage vs. EPSILON HEALTHCARE LTD |
| Apollo Investment vs. Morgan Stanley | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. Superior Plus Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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