Correlation Between Associated Capital and Apollo Commercial
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Apollo Commercial 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 Associated Capital and Apollo Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Apollo Commercial Real, you can compare the effects of market volatilities on Associated Capital and Apollo Commercial 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 Associated Capital with a short position of Apollo Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Apollo Commercial.
Diversification Opportunities for Associated Capital and Apollo Commercial
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Associated and Apollo is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Apollo Commercial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Commercial Real and Associated Capital 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 Associated Capital Group are associated (or correlated) with Apollo Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Commercial Real has no effect on the direction of Associated Capital i.e., Associated Capital and Apollo Commercial go up and down completely randomly.
Pair Corralation between Associated Capital and Apollo Commercial
Allowing for the 90-day total investment horizon Associated Capital Group is expected to generate 0.82 times more return on investment than Apollo Commercial. However, Associated Capital Group is 1.21 times less risky than Apollo Commercial. It trades about 0.01 of its potential returns per unit of risk. Apollo Commercial Real is currently generating about 0.0 per unit of risk. If you would invest 3,505 in Associated Capital Group on August 27, 2024 and sell it today you would earn a total of 137.00 from holding Associated Capital Group or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Apollo Commercial Real
Performance |
| Timeline |
| Associated Capital |
| Apollo Commercial Real |
Associated Capital and Apollo Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Apollo Commercial
The main advantage of trading using opposite Associated Capital and Apollo Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Apollo Commercial 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 Commercial will offset losses from the drop in Apollo Commercial's long position.| Associated Capital vs. PowerUp Acquisition Corp | Associated Capital vs. Aurora Innovation | Associated Capital vs. HUMANA INC | Associated Capital vs. Aquagold International |
| Apollo Commercial vs. Blackstone Mortgage Trust | Apollo Commercial vs. Omega Healthcare Investors | Apollo Commercial vs. Medical Properties Trust |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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