Correlation Between Crown Asia and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Crown Asia 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 Crown Asia and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crown Asia Chemicals and Apollo Global Capital, you can compare the effects of market volatilities on Crown Asia 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 Crown Asia with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Asia and Apollo Global.
Diversification Opportunities for Crown Asia and Apollo Global
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crown and Apollo is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Crown Asia Chemicals 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 Crown Asia 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 Crown Asia Chemicals 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 Crown Asia i.e., Crown Asia and Apollo Global go up and down completely randomly.
Pair Corralation between Crown Asia and Apollo Global
Assuming the 90 days trading horizon Crown Asia Chemicals is expected to generate 0.39 times more return on investment than Apollo Global. However, Crown Asia Chemicals is 2.57 times less risky than Apollo Global. It trades about 0.03 of its potential returns per unit of risk. Apollo Global Capital is currently generating about -0.05 per unit of risk. If you would invest 144.00 in Crown Asia Chemicals on December 7, 2024 and sell it today you would earn a total of 26.00 from holding Crown Asia Chemicals or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.16% |
| Values | Daily Returns |
Crown Asia Chemicals vs. Apollo Global Capital
Performance |
| Timeline |
| Crown Asia Chemicals |
| Apollo Global Capital |
Crown Asia and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Asia and Apollo Global
The main advantage of trading using opposite Crown Asia and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Asia 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.| Crown Asia vs. Swift Foods | ||
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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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