Correlation Between Lysaght Galvanized and Apollo Food
Can any of the company-specific risk be diversified away by investing in both Lysaght Galvanized 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 Lysaght Galvanized and Apollo Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lysaght Galvanized Steel and Apollo Food Holdings, you can compare the effects of market volatilities on Lysaght Galvanized 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 Lysaght Galvanized with a short position of Apollo Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lysaght Galvanized and Apollo Food.
Diversification Opportunities for Lysaght Galvanized and Apollo Food
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lysaght and Apollo is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lysaght Galvanized Steel 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 Lysaght Galvanized 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 Lysaght Galvanized Steel 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 Lysaght Galvanized i.e., Lysaght Galvanized and Apollo Food go up and down completely randomly.
Pair Corralation between Lysaght Galvanized and Apollo Food
Assuming the 90 days trading horizon Lysaght Galvanized Steel is expected to generate 4.71 times more return on investment than Apollo Food. However, Lysaght Galvanized is 4.71 times more volatile than Apollo Food Holdings. It trades about 0.06 of its potential returns per unit of risk. Apollo Food Holdings is currently generating about 0.09 per unit of risk. If you would invest 166.00 in Lysaght Galvanized Steel on August 31, 2024 and sell it today you would earn a total of 117.00 from holding Lysaght Galvanized Steel or generate 70.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.7% |
| Values | Daily Returns |
Lysaght Galvanized Steel vs. Apollo Food Holdings
Performance |
| Timeline |
| Lysaght Galvanized Steel |
| Apollo Food Holdings |
Lysaght Galvanized and Apollo Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lysaght Galvanized and Apollo Food
The main advantage of trading using opposite Lysaght Galvanized and Apollo Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lysaght Galvanized 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.| Lysaght Galvanized vs. Eversafe Rubber Bhd | Lysaght Galvanized vs. Senheng New Retail | Lysaght Galvanized vs. Media Prima Bhd | Lysaght Galvanized vs. Kluang Rubber |
| Apollo Food vs. Senheng New Retail | Apollo Food vs. Cengild Medical Berhad | Apollo Food vs. Press Metal Bhd | Apollo Food vs. TAS Offshore 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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