Correlation Between CAREER EDUCATION and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both CAREER EDUCATION 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 CAREER EDUCATION and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAREER EDUCATION and Apollo Investment Corp, you can compare the effects of market volatilities on CAREER EDUCATION 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 CAREER EDUCATION with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAREER EDUCATION and Apollo Investment.
Diversification Opportunities for CAREER EDUCATION and Apollo Investment
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CAREER and Apollo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CAREER EDUCATION 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 CAREER EDUCATION 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 CAREER EDUCATION 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 CAREER EDUCATION i.e., CAREER EDUCATION and Apollo Investment go up and down completely randomly.
Pair Corralation between CAREER EDUCATION and Apollo Investment
Assuming the 90 days trading horizon CAREER EDUCATION is expected to generate 1.72 times more return on investment than Apollo Investment. However, CAREER EDUCATION is 1.72 times more volatile than Apollo Investment Corp. It trades about 0.06 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.02 per unit of risk. If you would invest 2,037 in CAREER EDUCATION on November 28, 2024 and sell it today you would earn a total of 443.00 from holding CAREER EDUCATION or generate 21.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAREER EDUCATION vs. Apollo Investment Corp
Performance |
| Timeline |
| CAREER EDUCATION |
| Apollo Investment Corp |
CAREER EDUCATION and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAREER EDUCATION and Apollo Investment
The main advantage of trading using opposite CAREER EDUCATION and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAREER EDUCATION 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.| CAREER EDUCATION vs. Goodyear Tire Rubber | CAREER EDUCATION vs. Laureate Education | CAREER EDUCATION vs. IDP EDUCATION LTD | CAREER EDUCATION vs. American Public Education |
| Apollo Investment vs. Mount Gibson Iron | Apollo Investment vs. CHAMPION IRON | Apollo Investment vs. Hisense Home Appliances | Apollo Investment vs. UNIVERSAL MUSIC 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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