Correlation Between Lion Forest and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Lion Forest 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 Lion Forest and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Forest Industries and Apollo Food Holdings, you can compare the effects of market volatilities on Lion Forest 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 Lion Forest with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Forest and Apollo Food.
Diversification Opportunities for Lion Forest and Apollo Food
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and Apollo is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lion Forest Industries 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 Lion Forest 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 Lion Forest Industries 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 Lion Forest i.e., Lion Forest and Apollo Food go up and down completely randomly.
Pair Corralation between Lion Forest and Apollo Food
Assuming the 90 days trading horizon Lion Forest Industries is expected to generate 6.68 times more return on investment than Apollo Food. However, Lion Forest is 6.68 times more volatile than Apollo Food Holdings. It trades about 0.12 of its potential returns per unit of risk. Apollo Food Holdings is currently generating about -0.21 per unit of risk. If you would invest 35.00 in Lion Forest Industries on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Lion Forest Industries or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Forest Industries vs. Apollo Food Holdings
Performance |
| Timeline |
| Lion Forest Industries |
| Apollo Food Holdings |
Lion Forest and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Forest and Apollo Food
The main advantage of trading using opposite Lion Forest and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Forest 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.| Lion Forest vs. Central Industrial Corp | Lion Forest vs. Alliance Financial Group | Lion Forest vs. Uchi Technologies Bhd | Lion Forest vs. Dataprep Holdings Bhd |
| Apollo Food vs. Aurelius Technologies Bhd | Apollo Food vs. Minetech Resources Bhd | Apollo Food vs. Pantech Group Holdings | Apollo Food vs. Resintech 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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