Correlation Between Apollo Global and Apex Mining
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Apex Mining 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 Apex Mining 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 Apex Mining Co, you can compare the effects of market volatilities on Apollo Global and Apex Mining 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 Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Apex Mining.
Diversification Opportunities for Apollo Global and Apex Mining
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Apex is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining 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 Apex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Mining has no effect on the direction of Apollo Global i.e., Apollo Global and Apex Mining go up and down completely randomly.
Pair Corralation between Apollo Global and Apex Mining
Assuming the 90 days trading horizon Apollo Global Capital is expected to generate about the same return on investment as Apex Mining Co. However, Apollo Global is 1.56 times more volatile than Apex Mining Co. It trades about -0.26 of its potential returns per unit of risk. Apex Mining Co is currently producing about -0.4 per unit of risk. If you would invest 424.00 in Apex Mining Co on August 29, 2024 and sell it today you would lose (66.00) from holding Apex Mining Co or give up 15.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Capital vs. Apex Mining Co
Performance |
| Timeline |
| Apollo Global Capital |
| Apex Mining |
Apollo Global and Apex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Apex Mining
The main advantage of trading using opposite Apollo Global and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Apex Mining 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 Apex Mining will offset losses from the drop in Apex Mining's long position.| Apollo Global vs. East West Banking | Apollo Global vs. Asia United Bank | Apollo Global vs. Integrated Micro Electronics | Apollo Global vs. COL Financial Group |
| Apex Mining vs. Nickel Asia Corp | Apex Mining vs. Apollo Global Capital | Apex Mining vs. Philex Mining Corp | Apex Mining vs. Atlas Consolidated Mining |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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