Correlation Between Seaboard and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both Seaboard 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 Seaboard and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seaboard and Apollo Medical Holdings, you can compare the effects of market volatilities on Seaboard 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 Seaboard with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seaboard and Apollo Medical.
Diversification Opportunities for Seaboard and Apollo Medical
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Seaboard and Apollo is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Seaboard 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 Seaboard 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 Seaboard 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 Seaboard i.e., Seaboard and Apollo Medical go up and down completely randomly.
Pair Corralation between Seaboard and Apollo Medical
Assuming the 90 days horizon Seaboard is expected to under-perform the Apollo Medical. In addition to that, Seaboard is 1.02 times more volatile than Apollo Medical Holdings. It trades about -0.12 of its total potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.04 per unit of volatility. If you would invest 3,760 in Apollo Medical Holdings on September 1, 2024 and sell it today you would earn a total of 240.00 from holding Apollo Medical Holdings or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seaboard vs. Apollo Medical Holdings
Performance |
| Timeline |
| Seaboard |
| Apollo Medical Holdings |
Seaboard and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seaboard and Apollo Medical
The main advantage of trading using opposite Seaboard and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seaboard 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.| Seaboard vs. Superior Plus Corp | Seaboard vs. NMI Holdings | Seaboard vs. Origin Agritech | Seaboard vs. SIVERS SEMICONDUCTORS AB |
| Apollo Medical vs. WillScot Mobile Mini | Apollo Medical vs. Iridium Communications | Apollo Medical vs. Rogers Communications | Apollo Medical vs. Zijin Mining Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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