Correlation Between MODIVCARE INC and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both MODIVCARE INC 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 MODIVCARE INC and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MODIVCARE INC DL 001 and Apollo Investment Corp, you can compare the effects of market volatilities on MODIVCARE INC 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 MODIVCARE INC with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MODIVCARE INC and Apollo Investment.
Diversification Opportunities for MODIVCARE INC and Apollo Investment
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MODIVCARE and Apollo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding MODIVCARE INC DL 001 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 MODIVCARE INC 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 MODIVCARE INC DL 001 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 MODIVCARE INC i.e., MODIVCARE INC and Apollo Investment go up and down completely randomly.
Pair Corralation between MODIVCARE INC and Apollo Investment
Assuming the 90 days trading horizon MODIVCARE INC DL 001 is expected to generate 3.75 times more return on investment than Apollo Investment. However, MODIVCARE INC is 3.75 times more volatile than Apollo Investment Corp. It trades about 0.22 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.2 per unit of risk. If you would invest 1,480 in MODIVCARE INC DL 001 on September 13, 2024 and sell it today you would earn a total of 240.00 from holding MODIVCARE INC DL 001 or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MODIVCARE INC DL 001 vs. Apollo Investment Corp
Performance |
| Timeline |
| MODIVCARE INC DL |
| Apollo Investment Corp |
MODIVCARE INC and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MODIVCARE INC and Apollo Investment
The main advantage of trading using opposite MODIVCARE INC and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MODIVCARE INC 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.| MODIVCARE INC vs. JD HEALTH INTL | MODIVCARE INC vs. Fresenius SE Co | MODIVCARE INC vs. Fresenius Medical Care | MODIVCARE INC vs. Sonic Healthcare Limited |
| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |