Correlation Between SAFETY MEDICAL and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both SAFETY MEDICAL 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 SAFETY MEDICAL and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAFETY MEDICAL PROD and Apollo Investment Corp, you can compare the effects of market volatilities on SAFETY MEDICAL 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 SAFETY MEDICAL with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAFETY MEDICAL and Apollo Investment.
Diversification Opportunities for SAFETY MEDICAL and Apollo Investment
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAFETY and Apollo is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SAFETY MEDICAL PROD 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 SAFETY MEDICAL 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 SAFETY MEDICAL PROD 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 SAFETY MEDICAL i.e., SAFETY MEDICAL and Apollo Investment go up and down completely randomly.
Pair Corralation between SAFETY MEDICAL and Apollo Investment
Assuming the 90 days trading horizon SAFETY MEDICAL PROD is expected to under-perform the Apollo Investment. In addition to that, SAFETY MEDICAL is 2.94 times more volatile than Apollo Investment Corp. It trades about -0.25 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.36 per unit of volatility. If you would invest 1,208 in Apollo Investment Corp on September 1, 2024 and sell it today you would earn a total of 118.00 from holding Apollo Investment Corp or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAFETY MEDICAL PROD vs. Apollo Investment Corp
Performance |
| Timeline |
| SAFETY MEDICAL PROD |
| Apollo Investment Corp |
SAFETY MEDICAL and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAFETY MEDICAL and Apollo Investment
The main advantage of trading using opposite SAFETY MEDICAL and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAFETY MEDICAL 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.| SAFETY MEDICAL vs. MOLSON RS BEVERAGE | SAFETY MEDICAL vs. Molson Coors Beverage | SAFETY MEDICAL vs. ADRIATIC METALS LS 013355 | SAFETY MEDICAL vs. United Insurance Holdings |
| Apollo Investment vs. USWE SPORTS AB | Apollo Investment vs. PARKEN Sport Entertainment | Apollo Investment vs. SPORTING | Apollo Investment vs. Transport International Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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