Correlation Between Sunflow Sustain and Apollo Power
Can any of the company-specific risk be diversified away by investing in both Sunflow Sustain and Apollo Power 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 Sunflow Sustain and Apollo Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunflow Sustain and Apollo Power, you can compare the effects of market volatilities on Sunflow Sustain and Apollo Power 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 Sunflow Sustain with a short position of Apollo Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunflow Sustain and Apollo Power.
Diversification Opportunities for Sunflow Sustain and Apollo Power
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunflow and Apollo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sunflow Sustain and Apollo Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Power and Sunflow Sustain 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 Sunflow Sustain are associated (or correlated) with Apollo Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Power has no effect on the direction of Sunflow Sustain i.e., Sunflow Sustain and Apollo Power go up and down completely randomly.
Pair Corralation between Sunflow Sustain and Apollo Power
Assuming the 90 days trading horizon Sunflow Sustain is expected to generate 0.75 times more return on investment than Apollo Power. However, Sunflow Sustain is 1.32 times less risky than Apollo Power. It trades about 0.22 of its potential returns per unit of risk. Apollo Power is currently generating about -0.74 per unit of risk. If you would invest 50,800 in Sunflow Sustain on August 28, 2024 and sell it today you would earn a total of 6,100 from holding Sunflow Sustain or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunflow Sustain vs. Apollo Power
Performance |
| Timeline |
| Sunflow Sustain |
| Apollo Power |
Sunflow Sustain and Apollo Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunflow Sustain and Apollo Power
The main advantage of trading using opposite Sunflow Sustain and Apollo Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunflow Sustain position performs unexpectedly, Apollo Power 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 Power will offset losses from the drop in Apollo Power's long position.| Sunflow Sustain vs. Energix Renewable Energies | Sunflow Sustain vs. Enlight Renewable Energy | Sunflow Sustain vs. Meshek Energy Renewable Energies | Sunflow Sustain vs. Ormat Technologies |
| Apollo Power vs. Retailors | Apollo Power vs. Batm Advanced Communications | Apollo Power vs. Clal Biotechnology Industries | Apollo Power vs. Golan Plastic |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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