Correlation Between Singapore Telecommunicatio and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio 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 Singapore Telecommunicatio and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Telecommunications Limited and Apollo Medical Holdings, you can compare the effects of market volatilities on Singapore Telecommunicatio 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 Singapore Telecommunicatio with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and Apollo Medical.
Diversification Opportunities for Singapore Telecommunicatio and Apollo Medical
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singapore and Apollo is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L 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 Singapore Telecommunicatio 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 Singapore Telecommunications Limited 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 Singapore Telecommunicatio i.e., Singapore Telecommunicatio and Apollo Medical go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and Apollo Medical
Assuming the 90 days trading horizon Singapore Telecommunicatio is expected to generate 3.16 times less return on investment than Apollo Medical. But when comparing it to its historical volatility, Singapore Telecommunications Limited is 2.4 times less risky than Apollo Medical. It trades about 0.19 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3,000 in Apollo Medical Holdings on November 8, 2024 and sell it today you would earn a total of 500.00 from holding Apollo Medical Holdings or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. Apollo Medical Holdings
Performance |
| Timeline |
| Singapore Telecommunicatio |
| Apollo Medical Holdings |
Singapore Telecommunicatio and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and Apollo Medical
The main advantage of trading using opposite Singapore Telecommunicatio and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio 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.| Singapore Telecommunicatio vs. Columbia Sportswear | Singapore Telecommunicatio vs. American Homes 4 | Singapore Telecommunicatio vs. ADDUS HOMECARE | Singapore Telecommunicatio vs. Fukuyama Transporting Co |
| Apollo Medical vs. H2O Retailing | Apollo Medical vs. COSTCO WHOLESALE CDR | Apollo Medical vs. GALENA MINING LTD | Apollo Medical vs. National Retail Properties |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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