Correlation Between Asia United and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Asia United and Apollo Global 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 Asia United and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia United Bank and Apollo Global Capital, you can compare the effects of market volatilities on Asia United and Apollo Global 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 Asia United with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia United and Apollo Global.
Diversification Opportunities for Asia United and Apollo Global
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asia and Apollo is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Asia United Bank and Apollo Global Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Capital and Asia United 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 Asia United Bank are associated (or correlated) with Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Capital has no effect on the direction of Asia United i.e., Asia United and Apollo Global go up and down completely randomly.
Pair Corralation between Asia United and Apollo Global
Assuming the 90 days trading horizon Asia United Bank is expected to generate 0.63 times more return on investment than Apollo Global. However, Asia United Bank is 1.59 times less risky than Apollo Global. It trades about 0.31 of its potential returns per unit of risk. Apollo Global Capital is currently generating about -0.29 per unit of risk. If you would invest 5,025 in Asia United Bank on August 29, 2024 and sell it today you would earn a total of 1,275 from holding Asia United Bank or generate 25.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia United Bank vs. Apollo Global Capital
Performance |
| Timeline |
| Asia United Bank |
| Apollo Global Capital |
Asia United and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia United and Apollo Global
The main advantage of trading using opposite Asia United and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia United position performs unexpectedly, Apollo Global 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 Apollo Global will offset losses from the drop in Apollo Global's long position.| Asia United vs. Apex Mining Co | Asia United vs. Jollibee Foods Corp | Asia United vs. Allhome Corp | Asia United vs. STI Education Systems |
| Apollo Global vs. East West Banking | Apollo Global vs. Asia United Bank | Apollo Global vs. Integrated Micro Electronics | Apollo Global vs. COL Financial Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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