Correlation Between Delivery Hero and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Delivery Hero 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 Delivery Hero and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delivery Hero SE and Apollo Investment Corp, you can compare the effects of market volatilities on Delivery Hero 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 Delivery Hero with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delivery Hero and Apollo Investment.
Diversification Opportunities for Delivery Hero and Apollo Investment
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Delivery and Apollo is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Delivery Hero SE 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 Delivery Hero 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 Delivery Hero SE 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 Delivery Hero i.e., Delivery Hero and Apollo Investment go up and down completely randomly.
Pair Corralation between Delivery Hero and Apollo Investment
Assuming the 90 days trading horizon Delivery Hero is expected to generate 1.53 times less return on investment than Apollo Investment. In addition to that, Delivery Hero is 3.63 times more volatile than Apollo Investment Corp. It trades about 0.01 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.07 per unit of volatility. If you would invest 976.00 in Apollo Investment Corp on September 12, 2024 and sell it today you would earn a total of 327.00 from holding Apollo Investment Corp or generate 33.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Delivery Hero SE vs. Apollo Investment Corp
Performance |
| Timeline |
| Delivery Hero SE |
| Apollo Investment Corp |
Delivery Hero and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delivery Hero and Apollo Investment
The main advantage of trading using opposite Delivery Hero and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delivery Hero 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.| Delivery Hero vs. Apollo Investment Corp | Delivery Hero vs. Laureate Education | Delivery Hero vs. CHINA EDUCATION GROUP | Delivery Hero vs. EEDUCATION ALBERT AB |
| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
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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