Correlation Between Apollo Global and AgriNurture
Can any of the company-specific risk be diversified away by investing in both Apollo Global and AgriNurture 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 Apollo Global and AgriNurture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Global Capital and AgriNurture, you can compare the effects of market volatilities on Apollo Global and AgriNurture 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 Apollo Global with a short position of AgriNurture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and AgriNurture.
Diversification Opportunities for Apollo Global and AgriNurture
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and AgriNurture is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and AgriNurture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriNurture and Apollo 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 Apollo Global Capital are associated (or correlated) with AgriNurture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriNurture has no effect on the direction of Apollo Global i.e., Apollo Global and AgriNurture go up and down completely randomly.
Pair Corralation between Apollo Global and AgriNurture
Assuming the 90 days trading horizon Apollo Global Capital is expected to under-perform the AgriNurture. In addition to that, Apollo Global is 1.06 times more volatile than AgriNurture. It trades about -0.37 of its total potential returns per unit of risk. AgriNurture is currently generating about -0.06 per unit of volatility. If you would invest 55.00 in AgriNurture on September 1, 2024 and sell it today you would lose (2.00) from holding AgriNurture or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Capital vs. AgriNurture
Performance |
| Timeline |
| Apollo Global Capital |
| AgriNurture |
Apollo Global and AgriNurture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and AgriNurture
The main advantage of trading using opposite Apollo Global and AgriNurture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, AgriNurture 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 AgriNurture will offset losses from the drop in AgriNurture's long position.The idea behind Apollo Global Capital and AgriNurture pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AgriNurture vs. Cosco Capital | AgriNurture vs. Keepers Holdings | AgriNurture vs. GT Capital Holdings | AgriNurture vs. Allhome Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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