Correlation Between LPKF Laser and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both LPKF Laser 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 LPKF Laser and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPKF Laser Electronics and Apollo Investment Corp, you can compare the effects of market volatilities on LPKF Laser 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 LPKF Laser with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and Apollo Investment.
Diversification Opportunities for LPKF Laser and Apollo Investment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between LPKF and Apollo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics 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 LPKF Laser 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 LPKF Laser Electronics 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 LPKF Laser i.e., LPKF Laser and Apollo Investment go up and down completely randomly.
Pair Corralation between LPKF Laser and Apollo Investment
Assuming the 90 days horizon LPKF Laser Electronics is expected to generate 3.27 times more return on investment than Apollo Investment. However, LPKF Laser is 3.27 times more volatile than Apollo Investment Corp. It trades about 0.06 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about -0.02 per unit of risk. If you would invest 860.00 in LPKF Laser Electronics on December 1, 2024 and sell it today you would earn a total of 28.00 from holding LPKF Laser Electronics or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPKF Laser Electronics vs. Apollo Investment Corp
Performance |
| Timeline |
| LPKF Laser Electronics |
| Apollo Investment Corp |
LPKF Laser and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and Apollo Investment
The main advantage of trading using opposite LPKF Laser and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser 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.| LPKF Laser vs. PANIN INSURANCE | LPKF Laser vs. Universal Insurance Holdings | LPKF Laser vs. T MOBILE US | LPKF Laser vs. Entravision Communications |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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