Correlation Between ING Groep and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both ING Groep 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 ING Groep and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ING Groep NV and Apollo Investment Corp, you can compare the effects of market volatilities on ING Groep 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 ING Groep with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Groep and Apollo Investment.
Diversification Opportunities for ING Groep and Apollo Investment
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ING and Apollo is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ING Groep NV 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 ING Groep 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 ING Groep NV 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 ING Groep i.e., ING Groep and Apollo Investment go up and down completely randomly.
Pair Corralation between ING Groep and Apollo Investment
Assuming the 90 days trading horizon ING Groep NV is expected to under-perform the Apollo Investment. In addition to that, ING Groep is 1.1 times more volatile than Apollo Investment Corp. It trades about -0.23 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.36 per unit of volatility. If you would invest 1,208 in Apollo Investment Corp on September 1, 2024 and sell it today you would earn a total of 118.00 from holding Apollo Investment Corp or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ING Groep NV vs. Apollo Investment Corp
Performance |
| Timeline |
| ING Groep NV |
| Apollo Investment Corp |
ING Groep and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ING Groep and Apollo Investment
The main advantage of trading using opposite ING Groep and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Groep 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.| ING Groep vs. JPMorgan Chase Co | ING Groep vs. Bank of America | ING Groep vs. Citigroup | ING Groep vs. Mitsubishi UFJ Financial |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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