Correlation Between DIeteren Group and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both DIeteren Group 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 DIeteren Group and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIeteren Group SA and Apollo Investment Corp, you can compare the effects of market volatilities on DIeteren Group 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 DIeteren Group with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIeteren Group and Apollo Investment.
Diversification Opportunities for DIeteren Group and Apollo Investment
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DIeteren and Apollo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding DIeteren Group SA 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 DIeteren Group 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 DIeteren Group SA 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 DIeteren Group i.e., DIeteren Group and Apollo Investment go up and down completely randomly.
Pair Corralation between DIeteren Group and Apollo Investment
Assuming the 90 days trading horizon DIeteren Group SA is expected to under-perform the Apollo Investment. But the stock apears to be less risky and, when comparing its historical volatility, DIeteren Group SA is 1.19 times less risky than Apollo Investment. The stock trades about -0.37 of its potential returns per unit of risk. The Apollo Investment Corp is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,301 in Apollo Investment Corp on October 15, 2024 and sell it today you would lose (28.00) from holding Apollo Investment Corp or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIeteren Group SA vs. Apollo Investment Corp
Performance |
| Timeline |
| DIeteren Group SA |
| Apollo Investment Corp |
DIeteren Group and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIeteren Group and Apollo Investment
The main advantage of trading using opposite DIeteren Group and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIeteren Group 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.| DIeteren Group vs. Apollo Investment Corp | DIeteren Group vs. Sch Environnement SA | DIeteren Group vs. DONGJIANG ENVIRONMENTAL H | DIeteren Group vs. Chuangs China Investments |
| Apollo Investment vs. EMBARK EDUCATION LTD | Apollo Investment vs. Applied Materials | Apollo Investment vs. Materialise NV | Apollo Investment vs. Vulcan Materials |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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