Correlation Between Safestore Holdings and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Safestore Holdings 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 Safestore Holdings and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safestore Holdings plc and Apollo Investment Corp, you can compare the effects of market volatilities on Safestore Holdings 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 Safestore Holdings with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safestore Holdings and Apollo Investment.
Diversification Opportunities for Safestore Holdings and Apollo Investment
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safestore and Apollo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Safestore Holdings plc 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 Safestore Holdings 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 Safestore Holdings plc 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 Safestore Holdings i.e., Safestore Holdings and Apollo Investment go up and down completely randomly.
Pair Corralation between Safestore Holdings and Apollo Investment
Assuming the 90 days horizon Safestore Holdings plc is expected to under-perform the Apollo Investment. In addition to that, Safestore Holdings is 1.55 times more volatile than Apollo Investment Corp. It trades about -0.02 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 878.00 in Apollo Investment Corp on October 18, 2024 and sell it today you would earn a total of 419.00 from holding Apollo Investment Corp or generate 47.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Safestore Holdings plc vs. Apollo Investment Corp
Performance |
| Timeline |
| Safestore Holdings plc |
| Apollo Investment Corp |
Safestore Holdings and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safestore Holdings and Apollo Investment
The main advantage of trading using opposite Safestore Holdings and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safestore Holdings 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.| Safestore Holdings vs. China Datang | Safestore Holdings vs. CN DATANG C | Safestore Holdings vs. AGF Management Limited | Safestore Holdings vs. Platinum Investment Management |
| Apollo Investment vs. Broadwind | Apollo Investment vs. PKSHA TECHNOLOGY INC | Apollo Investment vs. FANDIFI TECHNOLOGY P | Apollo Investment vs. NAGOYA RAILROAD |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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