Correlation Between Apollo Power and Israel Opportunity
Can any of the company-specific risk be diversified away by investing in both Apollo Power and Israel Opportunity 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 Power and Israel Opportunity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Power and Israel Opportunity , you can compare the effects of market volatilities on Apollo Power and Israel Opportunity 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 Power with a short position of Israel Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Power and Israel Opportunity.
Diversification Opportunities for Apollo Power and Israel Opportunity
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Israel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Power and Israel Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Opportunity and Apollo Power 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 Power are associated (or correlated) with Israel Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Opportunity has no effect on the direction of Apollo Power i.e., Apollo Power and Israel Opportunity go up and down completely randomly.
Pair Corralation between Apollo Power and Israel Opportunity
Assuming the 90 days trading horizon Apollo Power is expected to under-perform the Israel Opportunity. In addition to that, Apollo Power is 1.29 times more volatile than Israel Opportunity . It trades about -0.12 of its total potential returns per unit of risk. Israel Opportunity is currently generating about 0.0 per unit of volatility. If you would invest 9,070 in Israel Opportunity on August 28, 2024 and sell it today you would lose (1,570) from holding Israel Opportunity or give up 17.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Power vs. Israel Opportunity
Performance |
| Timeline |
| Apollo Power |
| Israel Opportunity |
Apollo Power and Israel Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Power and Israel Opportunity
The main advantage of trading using opposite Apollo Power and Israel Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Power position performs unexpectedly, Israel Opportunity 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 Israel Opportunity will offset losses from the drop in Israel Opportunity's long position.| Apollo Power vs. Mivne Real Estate | Apollo Power vs. Photomyne | Apollo Power vs. Bezeq Israeli Telecommunication | Apollo Power vs. Creative Media Community |
| Israel Opportunity vs. OPC Energy | Israel Opportunity vs. Delek Group | Israel Opportunity vs. Lapidoth | Israel Opportunity vs. Naphtha |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |