Correlation Between Apollo Global and First Abacus
Can any of the company-specific risk be diversified away by investing in both Apollo Global and First Abacus 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 First Abacus 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 First Abacus Financial, you can compare the effects of market volatilities on Apollo Global and First Abacus 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 First Abacus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and First Abacus.
Diversification Opportunities for Apollo Global and First Abacus
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apollo and First is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and First Abacus Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Abacus Financial 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 First Abacus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Abacus Financial has no effect on the direction of Apollo Global i.e., Apollo Global and First Abacus go up and down completely randomly.
Pair Corralation between Apollo Global and First Abacus
If you would invest 69.00 in First Abacus Financial on August 28, 2024 and sell it today you would earn a total of 0.00 from holding First Abacus Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
Apollo Global Capital vs. First Abacus Financial
Performance |
| Timeline |
| Apollo Global Capital |
| First Abacus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Apollo Global and First Abacus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and First Abacus
The main advantage of trading using opposite Apollo Global and First Abacus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, First Abacus 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 First Abacus will offset losses from the drop in First Abacus' 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 |
| First Abacus vs. Bright Kindle Resources | First Abacus vs. Allhome Corp | First Abacus vs. Jollibee Foods Corp | First Abacus vs. LFM Properties 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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