Correlation Between Heidelberg Materials and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both Heidelberg Materials and Apollo Medical 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 Heidelberg Materials and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heidelberg Materials AG and Apollo Medical Holdings, you can compare the effects of market volatilities on Heidelberg Materials and Apollo Medical 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 Heidelberg Materials with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heidelberg Materials and Apollo Medical.
Diversification Opportunities for Heidelberg Materials and Apollo Medical
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Heidelberg and Apollo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Heidelberg Materials AG and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings and Heidelberg Materials 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 Heidelberg Materials AG are associated (or correlated) with Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of Heidelberg Materials i.e., Heidelberg Materials and Apollo Medical go up and down completely randomly.
Pair Corralation between Heidelberg Materials and Apollo Medical
Assuming the 90 days horizon Heidelberg Materials AG is expected to generate 0.54 times more return on investment than Apollo Medical. However, Heidelberg Materials AG is 1.86 times less risky than Apollo Medical. It trades about 0.35 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.15 per unit of risk. If you would invest 12,060 in Heidelberg Materials AG on October 25, 2024 and sell it today you would earn a total of 1,295 from holding Heidelberg Materials AG or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heidelberg Materials AG vs. Apollo Medical Holdings
Performance |
| Timeline |
| Heidelberg Materials |
| Apollo Medical Holdings |
Heidelberg Materials and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heidelberg Materials and Apollo Medical
The main advantage of trading using opposite Heidelberg Materials and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heidelberg Materials position performs unexpectedly, Apollo Medical 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 Medical will offset losses from the drop in Apollo Medical's long position.| Heidelberg Materials vs. MidCap Financial Investment | Heidelberg Materials vs. RYU Apparel | Heidelberg Materials vs. REINET INVESTMENTS SCA | Heidelberg Materials vs. Carnegie Clean Energy |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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