Correlation Between Apax Global and SupplyMe Capital
Can any of the company-specific risk be diversified away by investing in both Apax Global and SupplyMe Capital 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 Apax Global and SupplyMe Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apax Global Alpha and SupplyMe Capital PLC, you can compare the effects of market volatilities on Apax Global and SupplyMe Capital 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 Apax Global with a short position of SupplyMe Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apax Global and SupplyMe Capital.
Diversification Opportunities for Apax Global and SupplyMe Capital
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apax and SupplyMe is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Apax Global Alpha and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital PLC and Apax Global 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 Apax Global Alpha are associated (or correlated) with SupplyMe Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of Apax Global i.e., Apax Global and SupplyMe Capital go up and down completely randomly.
Pair Corralation between Apax Global and SupplyMe Capital
Assuming the 90 days trading horizon Apax Global Alpha is expected to under-perform the SupplyMe Capital. But the stock apears to be less risky and, when comparing its historical volatility, Apax Global Alpha is 15.91 times less risky than SupplyMe Capital. The stock trades about -0.17 of its potential returns per unit of risk. The SupplyMe Capital PLC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.30 in SupplyMe Capital PLC on September 12, 2024 and sell it today you would earn a total of 0.06 from holding SupplyMe Capital PLC or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apax Global Alpha vs. SupplyMe Capital PLC
Performance |
| Timeline |
| Apax Global Alpha |
| SupplyMe Capital PLC |
Apax Global and SupplyMe Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apax Global and SupplyMe Capital
The main advantage of trading using opposite Apax Global and SupplyMe Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apax Global position performs unexpectedly, SupplyMe Capital 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 SupplyMe Capital will offset losses from the drop in SupplyMe Capital's long position.| Apax Global vs. Sunny Optical Technology | Apax Global vs. Coeur Mining | Apax Global vs. Playtech Plc | Apax Global vs. L3Harris Technologies |
| SupplyMe Capital vs. Hochschild Mining plc | SupplyMe Capital vs. AcadeMedia AB | SupplyMe Capital vs. Coor Service Management | SupplyMe Capital vs. Hollywood Bowl Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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