Correlation Between SupplyMe Capital and Apax Global
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital and Apax Global 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 SupplyMe Capital and Apax Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and Apax Global Alpha, you can compare the effects of market volatilities on SupplyMe Capital and Apax Global 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 SupplyMe Capital with a short position of Apax Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Apax Global.
Diversification Opportunities for SupplyMe Capital and Apax Global
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SupplyMe and Apax is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC and Apax Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apax Global Alpha and SupplyMe 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 SupplyMe Capital PLC are associated (or correlated) with Apax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apax Global Alpha has no effect on the direction of SupplyMe Capital i.e., SupplyMe Capital and Apax Global go up and down completely randomly.
Pair Corralation between SupplyMe Capital and Apax Global
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to generate 15.91 times more return on investment than Apax Global. However, SupplyMe Capital is 15.91 times more volatile than Apax Global Alpha. It trades about 0.12 of its potential returns per unit of risk. Apax Global Alpha is currently generating about -0.17 per unit of risk. If you would invest 0.30 in SupplyMe Capital PLC on September 12, 2024 and sell it today you would earn a total of 0.06 from holding SupplyMe Capital PLC or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. Apax Global Alpha
Performance |
| Timeline |
| SupplyMe Capital PLC |
| Apax Global Alpha |
SupplyMe Capital and Apax Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and Apax Global
The main advantage of trading using opposite SupplyMe Capital and Apax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital position performs unexpectedly, Apax Global 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 Apax Global will offset losses from the drop in Apax Global's long position.| SupplyMe Capital vs. Hochschild Mining plc | SupplyMe Capital vs. AcadeMedia AB | SupplyMe Capital vs. Coor Service Management | SupplyMe Capital vs. Hollywood Bowl Group |
| Apax Global vs. Sunny Optical Technology | Apax Global vs. Coeur Mining | Apax Global vs. Playtech Plc | Apax Global vs. L3Harris Technologies |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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