Correlation Between Meta Platforms and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both Meta Platforms and Apollo Bancorp 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 Meta Platforms and Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and Apollo Bancorp, you can compare the effects of market volatilities on Meta Platforms and Apollo Bancorp 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 Meta Platforms with a short position of Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and Apollo Bancorp.
Diversification Opportunities for Meta Platforms and Apollo Bancorp
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meta and Apollo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and Meta Platforms 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 Meta Platforms are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Meta Platforms i.e., Meta Platforms and Apollo Bancorp go up and down completely randomly.
Pair Corralation between Meta Platforms and Apollo Bancorp
Given the investment horizon of 90 days Meta Platforms is expected to generate 1.14 times more return on investment than Apollo Bancorp. However, Meta Platforms is 1.14 times more volatile than Apollo Bancorp. It trades about 0.13 of its potential returns per unit of risk. Apollo Bancorp is currently generating about -0.09 per unit of risk. If you would invest 57,235 in Meta Platforms on November 1, 2024 and sell it today you would earn a total of 10,414 from holding Meta Platforms or generate 18.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.77% |
| Values | Daily Returns |
Meta Platforms vs. Apollo Bancorp
Performance |
| Timeline |
| Meta Platforms |
| Apollo Bancorp |
Meta Platforms and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Platforms and Apollo Bancorp
The main advantage of trading using opposite Meta Platforms and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms position performs unexpectedly, Apollo Bancorp 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 Bancorp will offset losses from the drop in Apollo Bancorp's long position.| Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc | Meta Platforms vs. Baidu Inc |
| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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