Correlation Between Apollo Global and NiHAO Mineral
Can any of the company-specific risk be diversified away by investing in both Apollo Global and NiHAO Mineral 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 NiHAO Mineral 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 NiHAO Mineral Resources, you can compare the effects of market volatilities on Apollo Global and NiHAO Mineral 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 NiHAO Mineral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and NiHAO Mineral.
Diversification Opportunities for Apollo Global and NiHAO Mineral
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Apollo and NiHAO is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and NiHAO Mineral Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiHAO Mineral 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 NiHAO Mineral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NiHAO Mineral Resources has no effect on the direction of Apollo Global i.e., Apollo Global and NiHAO Mineral go up and down completely randomly.
Pair Corralation between Apollo Global and NiHAO Mineral
Assuming the 90 days trading horizon Apollo Global Capital is expected to under-perform the NiHAO Mineral. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Global Capital is 2.11 times less risky than NiHAO Mineral. The stock trades about -0.31 of its potential returns per unit of risk. The NiHAO Mineral Resources is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 82.00 in NiHAO Mineral Resources on September 19, 2024 and sell it today you would lose (38.00) from holding NiHAO Mineral Resources or give up 46.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 65.32% |
| Values | Daily Returns |
Apollo Global Capital vs. NiHAO Mineral Resources
Performance |
| Timeline |
| Apollo Global Capital |
| NiHAO Mineral Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apollo Global and NiHAO Mineral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and NiHAO Mineral
The main advantage of trading using opposite Apollo Global and NiHAO Mineral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, NiHAO Mineral 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 NiHAO Mineral will offset losses from the drop in NiHAO Mineral's long position.| Apollo Global vs. Atok Big Wedge | Apollo Global vs. Philex Mining Corp | Apollo Global vs. Atlas Consolidated Mining | Apollo Global vs. Lepanto Consolidated Mining |
| NiHAO Mineral vs. Atok Big Wedge | NiHAO Mineral vs. Philex Mining Corp | NiHAO Mineral vs. Atlas Consolidated Mining | NiHAO Mineral vs. Lepanto 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |