Correlation Between Gateway Real and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Gateway Real 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 Gateway Real and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Real Estate and Apollo Investment Corp, you can compare the effects of market volatilities on Gateway Real 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 Gateway Real with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Real and Apollo Investment.
Diversification Opportunities for Gateway Real and Apollo Investment
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gateway and Apollo is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Real Estate 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 Gateway Real 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 Gateway Real Estate 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 Gateway Real i.e., Gateway Real and Apollo Investment go up and down completely randomly.
Pair Corralation between Gateway Real and Apollo Investment
Assuming the 90 days trading horizon Gateway Real Estate is expected to generate 10.58 times more return on investment than Apollo Investment. However, Gateway Real is 10.58 times more volatile than Apollo Investment Corp. It trades about 0.02 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.06 per unit of risk. If you would invest 310.00 in Gateway Real Estate on October 16, 2024 and sell it today you would lose (221.00) from holding Gateway Real Estate or give up 71.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Gateway Real Estate vs. Apollo Investment Corp
Performance |
| Timeline |
| Gateway Real Estate |
| Apollo Investment Corp |
Gateway Real and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gateway Real and Apollo Investment
The main advantage of trading using opposite Gateway Real and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Real 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.| Gateway Real vs. Gateway Real Estate | Gateway Real vs. LANDSEA HOMES P | Gateway Real vs. Superior Plus Corp | Gateway Real vs. NMI Holdings |
| 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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