Correlation Between Chimera Investment and Apollo Commercial
Can any of the company-specific risk be diversified away by investing in both Chimera Investment and Apollo Commercial 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 Chimera Investment and Apollo Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chimera Investment and Apollo Commercial Real, you can compare the effects of market volatilities on Chimera Investment and Apollo Commercial 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 Chimera Investment with a short position of Apollo Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chimera Investment and Apollo Commercial.
Diversification Opportunities for Chimera Investment and Apollo Commercial
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chimera and Apollo is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Chimera Investment and Apollo Commercial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Commercial Real and Chimera 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 Chimera Investment are associated (or correlated) with Apollo Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Commercial Real has no effect on the direction of Chimera Investment i.e., Chimera Investment and Apollo Commercial go up and down completely randomly.
Pair Corralation between Chimera Investment and Apollo Commercial
Considering the 90-day investment horizon Chimera Investment is expected to generate 3.29 times less return on investment than Apollo Commercial. In addition to that, Chimera Investment is 1.18 times more volatile than Apollo Commercial Real. It trades about 0.0 of its total potential returns per unit of risk. Apollo Commercial Real is currently generating about 0.01 per unit of volatility. If you would invest 889.00 in Apollo Commercial Real on August 24, 2024 and sell it today you would earn a total of 31.00 from holding Apollo Commercial Real or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chimera Investment vs. Apollo Commercial Real
Performance |
| Timeline |
| Chimera Investment |
| Apollo Commercial Real |
Chimera Investment and Apollo Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chimera Investment and Apollo Commercial
The main advantage of trading using opposite Chimera Investment and Apollo Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chimera Investment position performs unexpectedly, Apollo Commercial 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 Commercial will offset losses from the drop in Apollo Commercial's long position.| Chimera Investment vs. Two Harbors Investments | Chimera Investment vs. MFA Financial | Chimera Investment vs. Invesco Mortgage Capital | Chimera Investment vs. Orchid Island Capital |
| Apollo Commercial vs. Lument Finance Trust | Apollo Commercial vs. AG Mortgage Investment | Apollo Commercial vs. Rithm Capital Corp | Apollo Commercial vs. Cherry Hill Mortgage |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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