Correlation Between Bright Kindle and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Bright Kindle 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 Bright Kindle and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bright Kindle Resources and Apollo Global Capital, you can compare the effects of market volatilities on Bright Kindle 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 Bright Kindle with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Kindle and Apollo Global.
Diversification Opportunities for Bright Kindle and Apollo Global
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bright and Apollo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Bright Kindle Resources 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 Bright Kindle 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 Bright Kindle Resources 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 Bright Kindle i.e., Bright Kindle and Apollo Global go up and down completely randomly.
Pair Corralation between Bright Kindle and Apollo Global
Assuming the 90 days trading horizon Bright Kindle Resources is expected to generate 1.22 times more return on investment than Apollo Global. However, Bright Kindle is 1.22 times more volatile than Apollo Global Capital. It trades about -0.08 of its potential returns per unit of risk. Apollo Global Capital is currently generating about -0.19 per unit of risk. If you would invest 76.00 in Bright Kindle Resources on August 25, 2024 and sell it today you would lose (5.00) from holding Bright Kindle Resources or give up 6.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bright Kindle Resources vs. Apollo Global Capital
Performance |
| Timeline |
| Bright Kindle Resources |
| Apollo Global Capital |
Bright Kindle and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Kindle and Apollo Global
The main advantage of trading using opposite Bright Kindle and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Kindle 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.| Bright Kindle vs. Top Frontier Investment | Bright Kindle vs. Cebu Air Preferred | Bright Kindle vs. Converge Information Communications | Bright Kindle vs. Jollibee Foods Corp |
| Apollo Global vs. STI Education Systems | Apollo Global vs. Alliance Select Foods | Apollo Global vs. Semirara Mining Corp | Apollo Global vs. Crown Asia Chemicals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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