Correlation Between Apollo Commercial and Cherry Hill
Can any of the company-specific risk be diversified away by investing in both Apollo Commercial and Cherry Hill 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 Commercial and Cherry Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Commercial Real and Cherry Hill Mortgage, you can compare the effects of market volatilities on Apollo Commercial and Cherry Hill 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 Commercial with a short position of Cherry Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Commercial and Cherry Hill.
Diversification Opportunities for Apollo Commercial and Cherry Hill
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and Cherry is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Commercial Real and Cherry Hill Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cherry Hill Mortgage and Apollo Commercial 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 Commercial Real are associated (or correlated) with Cherry Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cherry Hill Mortgage has no effect on the direction of Apollo Commercial i.e., Apollo Commercial and Cherry Hill go up and down completely randomly.
Pair Corralation between Apollo Commercial and Cherry Hill
Considering the 90-day investment horizon Apollo Commercial Real is expected to under-perform the Cherry Hill. In addition to that, Apollo Commercial is 3.54 times more volatile than Cherry Hill Mortgage. It trades about 0.0 of its total potential returns per unit of risk. Cherry Hill Mortgage is currently generating about 0.04 per unit of volatility. If you would invest 2,365 in Cherry Hill Mortgage on August 24, 2024 and sell it today you would earn a total of 51.00 from holding Cherry Hill Mortgage or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Commercial Real vs. Cherry Hill Mortgage
Performance |
| Timeline |
| Apollo Commercial Real |
| Cherry Hill Mortgage |
Apollo Commercial and Cherry Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Commercial and Cherry Hill
The main advantage of trading using opposite Apollo Commercial and Cherry Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Commercial position performs unexpectedly, Cherry Hill 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 Cherry Hill will offset losses from the drop in Cherry Hill's long position.| Apollo Commercial vs. Lument Finance Trust | Apollo Commercial vs. AG Mortgage Investment | Apollo Commercial vs. Rithm Capital Corp | Apollo Commercial vs. Cherry Hill Mortgage |
| Cherry Hill vs. ACRES Commercial Realty | Cherry Hill vs. Chimera Investment | Cherry Hill vs. Cherry Hill Mortgage |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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