Correlation Between Mitsui Chemicals and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Mitsui Chemicals 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 Mitsui Chemicals and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitsui Chemicals and Apollo Investment Corp, you can compare the effects of market volatilities on Mitsui Chemicals 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 Mitsui Chemicals with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitsui Chemicals and Apollo Investment.
Diversification Opportunities for Mitsui Chemicals and Apollo Investment
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mitsui and Apollo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mitsui Chemicals 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 Mitsui Chemicals 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 Mitsui Chemicals 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 Mitsui Chemicals i.e., Mitsui Chemicals and Apollo Investment go up and down completely randomly.
Pair Corralation between Mitsui Chemicals and Apollo Investment
Assuming the 90 days trading horizon Mitsui Chemicals is expected to generate 4.0 times less return on investment than Apollo Investment. In addition to that, Mitsui Chemicals is 1.35 times more volatile than Apollo Investment Corp. It trades about 0.01 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 867.00 in Apollo Investment Corp on October 7, 2024 and sell it today you would earn a total of 454.00 from holding Apollo Investment Corp or generate 52.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitsui Chemicals vs. Apollo Investment Corp
Performance |
| Timeline |
| Mitsui Chemicals |
| Apollo Investment Corp |
Mitsui Chemicals and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitsui Chemicals and Apollo Investment
The main advantage of trading using opposite Mitsui Chemicals and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitsui Chemicals 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.| Mitsui Chemicals vs. Apple Inc | Mitsui Chemicals vs. Apple Inc | Mitsui Chemicals vs. Apple Inc | Mitsui Chemicals vs. Apple Inc |
| Apollo Investment vs. The Charles Schwab | Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. NMI Holdings | Apollo Investment vs. SIVERS SEMICONDUCTORS AB |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |