Correlation Between Apollo Global and Manila Mining
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Manila 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 Manila 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 Manila Mining Corp, you can compare the effects of market volatilities on Apollo Global and Manila 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 Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Manila Mining.
Diversification Opportunities for Apollo Global and Manila Mining
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Manila is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and Manila Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Mining Corp 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 Manila Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Mining Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Manila Mining go up and down completely randomly.
Pair Corralation between Apollo Global and Manila Mining
Assuming the 90 days trading horizon Apollo Global Capital is expected to generate 1.36 times more return on investment than Manila Mining. However, Apollo Global is 1.36 times more volatile than Manila Mining Corp. It trades about -0.26 of its potential returns per unit of risk. Manila Mining Corp is currently generating about -0.76 per unit of risk. If you would invest 0.50 in Apollo Global Capital on August 29, 2024 and sell it today you would lose (0.08) from holding Apollo Global Capital or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 40.91% |
| Values | Daily Returns |
Apollo Global Capital vs. Manila Mining Corp
Performance |
| Timeline |
| Apollo Global Capital |
| Manila Mining Corp |
Apollo Global and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Manila Mining
The main advantage of trading using opposite Apollo Global and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Manila 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 Manila Mining will offset losses from the drop in Manila 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 |
| Manila Mining vs. Nickel Asia Corp | Manila Mining vs. Apollo Global Capital | Manila Mining vs. Philex Mining Corp | Manila 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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