Correlation Between Teck Resources and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both Teck Resources 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 Teck Resources and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teck Resources Ltd and Apollo Medical Holdings, you can compare the effects of market volatilities on Teck Resources 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 Teck Resources with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teck Resources and Apollo Medical.
Diversification Opportunities for Teck Resources and Apollo Medical
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Teck and Apollo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Teck Resources Ltd 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 Teck Resources 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 Teck Resources Ltd 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 Teck Resources i.e., Teck Resources and Apollo Medical go up and down completely randomly.
Pair Corralation between Teck Resources and Apollo Medical
Assuming the 90 days trading horizon Teck Resources Ltd is expected to under-perform the Apollo Medical. In addition to that, Teck Resources is 1.87 times more volatile than Apollo Medical Holdings. It trades about -0.01 of its total potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.05 per unit of volatility. If you would invest 3,760 in Apollo Medical Holdings on September 5, 2024 and sell it today you would earn a total of 300.00 from holding Apollo Medical Holdings or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Teck Resources Ltd vs. Apollo Medical Holdings
Performance |
| Timeline |
| Teck Resources |
| Apollo Medical Holdings |
Teck Resources and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teck Resources and Apollo Medical
The main advantage of trading using opposite Teck Resources and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teck Resources 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.| Teck Resources vs. Apollo Medical Holdings | Teck Resources vs. IMAGIN MEDICAL INC | Teck Resources vs. Choice Hotels International | Teck Resources vs. SAFETY MEDICAL PROD |
| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world |