Correlation Between CDL INVESTMENT and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both CDL INVESTMENT and Apollo Investment 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 CDL INVESTMENT and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDL INVESTMENT and Apollo Investment Corp, you can compare the effects of market volatilities on CDL INVESTMENT and Apollo Investment 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 CDL INVESTMENT with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDL INVESTMENT and Apollo Investment.
Diversification Opportunities for CDL INVESTMENT and Apollo Investment
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between CDL and Apollo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CDL INVESTMENT and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and CDL INVESTMENT 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 CDL INVESTMENT are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of CDL INVESTMENT i.e., CDL INVESTMENT and Apollo Investment go up and down completely randomly.
Pair Corralation between CDL INVESTMENT and Apollo Investment
Assuming the 90 days trading horizon CDL INVESTMENT is expected to generate 2.7 times less return on investment than Apollo Investment. In addition to that, CDL INVESTMENT is 1.98 times more volatile than Apollo Investment Corp. It trades about 0.02 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.1 per unit of volatility. If you would invest 846.00 in Apollo Investment Corp on August 29, 2024 and sell it today you would earn a total of 491.00 from holding Apollo Investment Corp or generate 58.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDL INVESTMENT vs. Apollo Investment Corp
Performance |
| Timeline |
| CDL INVESTMENT |
| Apollo Investment Corp |
CDL INVESTMENT and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDL INVESTMENT and Apollo Investment
The main advantage of trading using opposite CDL INVESTMENT and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDL INVESTMENT position performs unexpectedly, Apollo Investment 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 Investment will offset losses from the drop in Apollo Investment's long position.| CDL INVESTMENT vs. Sabra Health Care | CDL INVESTMENT vs. Zijin Mining Group | CDL INVESTMENT vs. CVS Health | CDL INVESTMENT vs. EPSILON HEALTHCARE LTD |
| Apollo Investment vs. Macquarie Group Limited | Apollo Investment vs. MSCI Inc | Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. NMI Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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