Correlation Between Sachem Capital and Apollo Commercial
Can any of the company-specific risk be diversified away by investing in both Sachem Capital and Apollo Commercial 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 Sachem Capital and Apollo Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sachem Capital Corp and Apollo Commercial Real, you can compare the effects of market volatilities on Sachem Capital and Apollo Commercial 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 Sachem Capital with a short position of Apollo Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sachem Capital and Apollo Commercial.
Diversification Opportunities for Sachem Capital and Apollo Commercial
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sachem and Apollo is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sachem Capital Corp and Apollo Commercial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Commercial Real and Sachem Capital 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 Sachem Capital Corp are associated (or correlated) with Apollo Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Commercial Real has no effect on the direction of Sachem Capital i.e., Sachem Capital and Apollo Commercial go up and down completely randomly.
Pair Corralation between Sachem Capital and Apollo Commercial
Given the investment horizon of 90 days Sachem Capital Corp is expected to under-perform the Apollo Commercial. In addition to that, Sachem Capital is 3.14 times more volatile than Apollo Commercial Real. It trades about -0.15 of its total potential returns per unit of risk. Apollo Commercial Real is currently generating about 0.1 per unit of volatility. If you would invest 866.00 in Apollo Commercial Real on November 1, 2024 and sell it today you would earn a total of 22.00 from holding Apollo Commercial Real or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sachem Capital Corp vs. Apollo Commercial Real
Performance |
| Timeline |
| Sachem Capital Corp |
| Apollo Commercial Real |
Sachem Capital and Apollo Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sachem Capital and Apollo Commercial
The main advantage of trading using opposite Sachem Capital and Apollo Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sachem Capital position performs unexpectedly, Apollo Commercial 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 Commercial will offset losses from the drop in Apollo Commercial's long position.| Sachem Capital vs. Apollo Commercial Real | Sachem Capital vs. Ready Capital Corp | Sachem Capital vs. Ellington Residential Mortgage | Sachem Capital vs. KKR Real Estate |
| Apollo Commercial vs. Ares Commercial Real | Apollo Commercial vs. PennyMac Mortgage Investment | Apollo Commercial vs. Blackstone Mortgage Trust | Apollo Commercial vs. Starwood Property Trust |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |