Correlation Between AJX Old and Apollo Commercial
Can any of the company-specific risk be diversified away by investing in both AJX Old 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 AJX Old and Apollo Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AJX Old and Apollo Commercial Real, you can compare the effects of market volatilities on AJX Old 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 AJX Old with a short position of Apollo Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AJX Old and Apollo Commercial.
Diversification Opportunities for AJX Old and Apollo Commercial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AJX and Apollo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AJX Old 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 AJX Old 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 AJX Old 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 AJX Old i.e., AJX Old and Apollo Commercial go up and down completely randomly.
Pair Corralation between AJX Old and Apollo Commercial
If you would invest 878.00 in Apollo Commercial Real on November 9, 2024 and sell it today you would earn a total of 37.00 from holding Apollo Commercial Real or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AJX Old vs. Apollo Commercial Real
Performance |
| Timeline |
| AJX Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Apollo Commercial Real |
AJX Old and Apollo Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AJX Old and Apollo Commercial
The main advantage of trading using opposite AJX Old and Apollo Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AJX Old 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.| AJX Old vs. Ellington Financial | AJX Old vs. Dynex Capital | AJX Old vs. Ares Commercial Real | AJX Old vs. Cherry Hill Mortgage |
| Apollo Commercial vs. Ares Commercial Real | Apollo Commercial vs. PennyMac Mortgage Investment | Apollo Commercial vs. Blackstone Mortgage Trust | Apollo Commercial vs. Starwood Property 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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