Correlation Between Apollo Global and STI Education
Can any of the company-specific risk be diversified away by investing in both Apollo Global and STI Education 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 STI Education 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 STI Education Systems, you can compare the effects of market volatilities on Apollo Global and STI Education 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 STI Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and STI Education.
Diversification Opportunities for Apollo Global and STI Education
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and STI is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and STI Education Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STI Education Systems 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 STI Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STI Education Systems has no effect on the direction of Apollo Global i.e., Apollo Global and STI Education go up and down completely randomly.
Pair Corralation between Apollo Global and STI Education
Assuming the 90 days trading horizon Apollo Global Capital is expected to under-perform the STI Education. In addition to that, Apollo Global is 1.92 times more volatile than STI Education Systems. It trades about -0.06 of its total potential returns per unit of risk. STI Education Systems is currently generating about 0.14 per unit of volatility. If you would invest 29.00 in STI Education Systems on August 25, 2024 and sell it today you would earn a total of 99.00 from holding STI Education Systems or generate 341.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.75% |
| Values | Daily Returns |
Apollo Global Capital vs. STI Education Systems
Performance |
| Timeline |
| Apollo Global Capital |
| STI Education Systems |
Apollo Global and STI Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and STI Education
The main advantage of trading using opposite Apollo Global and STI Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, STI Education 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 STI Education will offset losses from the drop in STI Education's long position.| Apollo Global vs. STI Education Systems | Apollo Global vs. Alliance Select Foods | Apollo Global vs. Semirara Mining Corp | Apollo Global vs. Crown Asia Chemicals |
| STI Education vs. Allhome Corp | STI Education vs. Altus Property Ventures | STI Education vs. AgriNurture | STI Education vs. Wilcon Depot |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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