Correlation Between DEVRY EDUCATION and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both DEVRY 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 DEVRY 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 DEVRY EDUCATION GRP and Apollo Investment Corp, you can compare the effects of market volatilities on DEVRY 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 DEVRY EDUCATION with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of DEVRY EDUCATION and Apollo Investment.
Diversification Opportunities for DEVRY EDUCATION and Apollo Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DEVRY and Apollo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding DEVRY EDUCATION GRP 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 DEVRY 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 DEVRY EDUCATION GRP 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 DEVRY EDUCATION i.e., DEVRY EDUCATION and Apollo Investment go up and down completely randomly.
Pair Corralation between DEVRY EDUCATION and Apollo Investment
Assuming the 90 days trading horizon DEVRY EDUCATION GRP is expected to generate 2.39 times more return on investment than Apollo Investment. However, DEVRY EDUCATION is 2.39 times more volatile than Apollo Investment Corp. It trades about 0.27 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.36 per unit of risk. If you would invest 7,300 in DEVRY EDUCATION GRP on September 1, 2024 and sell it today you would earn a total of 1,250 from holding DEVRY EDUCATION GRP or generate 17.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DEVRY EDUCATION GRP vs. Apollo Investment Corp
Performance |
| Timeline |
| DEVRY EDUCATION GRP |
| Apollo Investment Corp |
DEVRY EDUCATION and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DEVRY EDUCATION and Apollo Investment
The main advantage of trading using opposite DEVRY EDUCATION and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DEVRY 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.| DEVRY EDUCATION vs. Universal Entertainment | DEVRY EDUCATION vs. National Retail Properties | DEVRY EDUCATION vs. PLAYSTUDIOS A DL 0001 | DEVRY EDUCATION vs. Live Nation Entertainment |
| Apollo Investment vs. USWE SPORTS AB | Apollo Investment vs. PARKEN Sport Entertainment | Apollo Investment vs. SPORTING | Apollo Investment vs. Transport International Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |