Correlation Between Renesas Electronics and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both Renesas Electronics and Apollo Medical 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 Renesas Electronics and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Renesas Electronics and Apollo Medical Holdings, you can compare the effects of market volatilities on Renesas Electronics and Apollo Medical 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 Renesas Electronics with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renesas Electronics and Apollo Medical.
Diversification Opportunities for Renesas Electronics and Apollo Medical
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Renesas and Apollo is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Renesas Electronics and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings and Renesas Electronics 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 Renesas Electronics are associated (or correlated) with Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of Renesas Electronics i.e., Renesas Electronics and Apollo Medical go up and down completely randomly.
Pair Corralation between Renesas Electronics and Apollo Medical
Assuming the 90 days horizon Renesas Electronics is expected to generate 6.46 times less return on investment than Apollo Medical. In addition to that, Renesas Electronics is 1.08 times more volatile than Apollo Medical Holdings. It trades about 0.03 of its total potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.22 per unit of volatility. If you would invest 3,020 in Apollo Medical Holdings on November 3, 2024 and sell it today you would earn a total of 460.00 from holding Apollo Medical Holdings or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Renesas Electronics vs. Apollo Medical Holdings
Performance |
| Timeline |
| Renesas Electronics |
| Apollo Medical Holdings |
Renesas Electronics and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renesas Electronics and Apollo Medical
The main advantage of trading using opposite Renesas Electronics and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renesas Electronics position performs unexpectedly, Apollo Medical 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 Medical will offset losses from the drop in Apollo Medical's long position.| Renesas Electronics vs. Allegheny Technologies Incorporated | Renesas Electronics vs. WILLIS LEASE FIN | Renesas Electronics vs. ALBIS LEASING AG | Renesas Electronics vs. Agilent Technologies |
| Apollo Medical vs. X FAB Silicon Foundries | Apollo Medical vs. Soken Chemical Engineering | Apollo Medical vs. INDO RAMA SYNTHETIC | Apollo Medical vs. TRI CHEMICAL LABORATINC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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