Correlation Between CHIBA BANK and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both CHIBA BANK and Apollo Medical 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 CHIBA BANK and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHIBA BANK and Apollo Medical Holdings, you can compare the effects of market volatilities on CHIBA BANK and Apollo Medical 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 CHIBA BANK with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIBA BANK and Apollo Medical.
Diversification Opportunities for CHIBA BANK and Apollo Medical
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CHIBA and Apollo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CHIBA BANK and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings and CHIBA BANK 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 CHIBA BANK are associated (or correlated) with Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of CHIBA BANK i.e., CHIBA BANK and Apollo Medical go up and down completely randomly.
Pair Corralation between CHIBA BANK and Apollo Medical
Assuming the 90 days trading horizon CHIBA BANK is expected to generate 1.3 times more return on investment than Apollo Medical. However, CHIBA BANK is 1.3 times more volatile than Apollo Medical Holdings. It trades about 0.04 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.02 per unit of risk. If you would invest 660.00 in CHIBA BANK on November 9, 2024 and sell it today you would earn a total of 145.00 from holding CHIBA BANK or generate 21.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHIBA BANK vs. Apollo Medical Holdings
Performance |
| Timeline |
| CHIBA BANK |
| Apollo Medical Holdings |
CHIBA BANK and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHIBA BANK and Apollo Medical
The main advantage of trading using opposite CHIBA BANK and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIBA BANK position performs unexpectedly, Apollo Medical 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 Medical will offset losses from the drop in Apollo Medical's long position.| CHIBA BANK vs. Firan Technology Group | CHIBA BANK vs. Siemens Healthineers AG | CHIBA BANK vs. Align Technology | CHIBA BANK vs. UPDATE SOFTWARE |
| Apollo Medical vs. American Eagle Outfitters | Apollo Medical vs. Entravision Communications | Apollo Medical vs. Chunghwa Telecom Co | Apollo Medical vs. Telecom Argentina SA |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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