Correlation Between Ahren Acquisition and Apollo Strategic
Can any of the company-specific risk be diversified away by investing in both Ahren Acquisition and Apollo Strategic 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 Ahren Acquisition and Apollo Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ahren Acquisition Corp and Apollo Strategic Growth, you can compare the effects of market volatilities on Ahren Acquisition and Apollo Strategic 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 Ahren Acquisition with a short position of Apollo Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ahren Acquisition and Apollo Strategic.
Diversification Opportunities for Ahren Acquisition and Apollo Strategic
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ahren and Apollo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ahren Acquisition Corp and Apollo Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Strategic Growth and Ahren Acquisition 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 Ahren Acquisition Corp are associated (or correlated) with Apollo Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Strategic Growth has no effect on the direction of Ahren Acquisition i.e., Ahren Acquisition and Apollo Strategic go up and down completely randomly.
Pair Corralation between Ahren Acquisition and Apollo Strategic
Given the investment horizon of 90 days Ahren Acquisition Corp is not expected to generate positive returns. However, Ahren Acquisition Corp is 4.02 times less risky than Apollo Strategic. It waists most of its returns potential to compensate for thr risk taken. Apollo Strategic is generating about 0.12 per unit of risk. If you would invest 1,020 in Apollo Strategic Growth on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Apollo Strategic Growth or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 54.72% |
| Values | Daily Returns |
Ahren Acquisition Corp vs. Apollo Strategic Growth
Performance |
| Timeline |
| Ahren Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Apollo Strategic Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ahren Acquisition and Apollo Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ahren Acquisition and Apollo Strategic
The main advantage of trading using opposite Ahren Acquisition and Apollo Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ahren Acquisition position performs unexpectedly, Apollo Strategic 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 Strategic will offset losses from the drop in Apollo Strategic's long position.| Ahren Acquisition vs. Manaris Corp | Ahren Acquisition vs. Alpha Star Acquisition | Ahren Acquisition vs. Alpha One | Ahren Acquisition vs. Athena Technology Acquisition |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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