Correlation Between American Eagle and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both American Eagle and Apollo Medical 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 American Eagle and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Eagle Outfitters and Apollo Medical Holdings, you can compare the effects of market volatilities on American Eagle and Apollo Medical 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 American Eagle with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and Apollo Medical.
Diversification Opportunities for American Eagle and Apollo Medical
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and Apollo is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings and American Eagle 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 American Eagle Outfitters are associated (or correlated) with Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of American Eagle i.e., American Eagle and Apollo Medical go up and down completely randomly.
Pair Corralation between American Eagle and Apollo Medical
Assuming the 90 days trading horizon American Eagle Outfitters is expected to under-perform the Apollo Medical. In addition to that, American Eagle is 1.04 times more volatile than Apollo Medical Holdings. It trades about -0.4 of its total potential returns per unit of risk. Apollo Medical Holdings is currently generating about -0.19 per unit of volatility. If you would invest 3,460 in Apollo Medical Holdings on December 10, 2024 and sell it today you would lose (360.00) from holding Apollo Medical Holdings or give up 10.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Eagle Outfitters vs. Apollo Medical Holdings
Performance |
| Timeline |
| American Eagle Outfitters |
| Apollo Medical Holdings |
American Eagle and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and Apollo Medical
The main advantage of trading using opposite American Eagle and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle position performs unexpectedly, Apollo Medical 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 Medical will offset losses from the drop in Apollo Medical's long position.| American Eagle vs. Zijin Mining Group | American Eagle vs. MCEWEN MINING INC | American Eagle vs. De Grey Mining | American Eagle vs. Monument Mining Limited |
| Apollo Medical vs. Coor Service Management | Apollo Medical vs. Columbia Sportswear | Apollo Medical vs. Ares Management Corp | Apollo Medical vs. USWE SPORTS AB |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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