Correlation Between Apollo Global and Bright Kindle
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Bright Kindle 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 Bright Kindle 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 Bright Kindle Resources, you can compare the effects of market volatilities on Apollo Global and Bright Kindle 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 Bright Kindle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Bright Kindle.
Diversification Opportunities for Apollo Global and Bright Kindle
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apollo and Bright is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and Bright Kindle Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Kindle Resources 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 Bright Kindle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Kindle Resources has no effect on the direction of Apollo Global i.e., Apollo Global and Bright Kindle go up and down completely randomly.
Pair Corralation between Apollo Global and Bright Kindle
Assuming the 90 days trading horizon Apollo Global Capital is expected to under-perform the Bright Kindle. In addition to that, Apollo Global is 1.14 times more volatile than Bright Kindle Resources. It trades about -0.08 of its total potential returns per unit of risk. Bright Kindle Resources is currently generating about -0.02 per unit of volatility. If you would invest 118.00 in Bright Kindle Resources on August 29, 2024 and sell it today you would lose (48.00) from holding Bright Kindle Resources or give up 40.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 89.82% |
| Values | Daily Returns |
Apollo Global Capital vs. Bright Kindle Resources
Performance |
| Timeline |
| Apollo Global Capital |
| Bright Kindle Resources |
Apollo Global and Bright Kindle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Bright Kindle
The main advantage of trading using opposite Apollo Global and Bright Kindle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Bright Kindle 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 Bright Kindle will offset losses from the drop in Bright Kindle's long position.| Apollo Global vs. Converge Information Communications | Apollo Global vs. Figaro Coffee Group | Apollo Global vs. Jollibee Foods Corp | Apollo Global vs. Rizal Commercial Banking |
| Bright Kindle vs. Allhome Corp | Bright Kindle vs. Jollibee Foods Corp | Bright Kindle vs. LFM Properties Corp | Bright Kindle vs. PXP Energy 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 CEOs Directory module to screen CEOs from public companies around the world.
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