Correlation Between Bank of the and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Bank of the 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 Bank of the and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of the and Apollo Global Capital, you can compare the effects of market volatilities on Bank of the 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 Bank of the with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of the and Apollo Global.
Diversification Opportunities for Bank of the and Apollo Global
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Apollo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bank of the 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 Bank of the 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 Bank of the 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 Bank of the i.e., Bank of the and Apollo Global go up and down completely randomly.
Pair Corralation between Bank of the and Apollo Global
Assuming the 90 days trading horizon Bank of the is expected to generate 0.52 times more return on investment than Apollo Global. However, Bank of the is 1.94 times less risky than Apollo Global. It trades about -0.36 of its potential returns per unit of risk. Apollo Global Capital is currently generating about -0.27 per unit of risk. If you would invest 14,550 in Bank of the on August 31, 2024 and sell it today you would lose (1,590) from holding Bank of the or give up 10.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of the vs. Apollo Global Capital
Performance |
| Timeline |
| Bank of the |
| Apollo Global Capital |
Bank of the and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of the and Apollo Global
The main advantage of trading using opposite Bank of the and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of the 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.| Bank of the vs. Semirara Mining Corp | Bank of the vs. Manila Mining Corp | Bank of the vs. Apex Mining Co | Bank of the vs. Prime Media Holdings |
| Apollo Global vs. Philex Mining Corp | Apollo Global vs. Atlas Consolidated Mining | Apollo Global vs. Lepanto Consolidated Mining | Apollo Global vs. Apex Mining Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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