Correlation Between Apollo Commercial and Manhattan Bridge
Can any of the company-specific risk be diversified away by investing in both Apollo Commercial and Manhattan Bridge 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 Manhattan Bridge 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 Manhattan Bridge Capital, you can compare the effects of market volatilities on Apollo Commercial and Manhattan Bridge 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 Manhattan Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Commercial and Manhattan Bridge.
Diversification Opportunities for Apollo Commercial and Manhattan Bridge
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and Manhattan is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Commercial Real and Manhattan Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Bridge Capital 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 Manhattan Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Bridge Capital has no effect on the direction of Apollo Commercial i.e., Apollo Commercial and Manhattan Bridge go up and down completely randomly.
Pair Corralation between Apollo Commercial and Manhattan Bridge
Considering the 90-day investment horizon Apollo Commercial Real is expected to generate 0.94 times more return on investment than Manhattan Bridge. However, Apollo Commercial Real is 1.06 times less risky than Manhattan Bridge. It trades about 0.22 of its potential returns per unit of risk. Manhattan Bridge Capital is currently generating about -0.07 per unit of risk. If you would invest 874.00 in Apollo Commercial Real on August 24, 2024 and sell it today you would earn a total of 46.00 from holding Apollo Commercial Real or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Commercial Real vs. Manhattan Bridge Capital
Performance |
| Timeline |
| Apollo Commercial Real |
| Manhattan Bridge Capital |
Apollo Commercial and Manhattan Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Commercial and Manhattan Bridge
The main advantage of trading using opposite Apollo Commercial and Manhattan Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Commercial position performs unexpectedly, Manhattan Bridge 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 Manhattan Bridge will offset losses from the drop in Manhattan Bridge's long position.| Apollo Commercial vs. Ares Commercial Real | Apollo Commercial vs. PennyMac Mortgage Investment | Apollo Commercial vs. Blackstone Mortgage Trust | Apollo Commercial vs. Starwood Property Trust |
| Manhattan Bridge vs. Franklin BSP Realty | Manhattan Bridge vs. AGNC Investment Corp | Manhattan Bridge vs. Nexpoint Real Estate | Manhattan Bridge vs. Great Ajax Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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