Correlation Between Telecom Argentina and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Telecom Argentina and Apollo Investment 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 Telecom Argentina and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telecom Argentina SA and Apollo Investment Corp, you can compare the effects of market volatilities on Telecom Argentina and Apollo Investment 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 Telecom Argentina with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecom Argentina and Apollo Investment.
Diversification Opportunities for Telecom Argentina and Apollo Investment
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Telecom and Apollo is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Argentina SA and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and Telecom Argentina 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 Telecom Argentina SA are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Telecom Argentina i.e., Telecom Argentina and Apollo Investment go up and down completely randomly.
Pair Corralation between Telecom Argentina and Apollo Investment
Assuming the 90 days horizon Telecom Argentina SA is expected to generate 3.22 times more return on investment than Apollo Investment. However, Telecom Argentina is 3.22 times more volatile than Apollo Investment Corp. It trades about 0.12 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.01 per unit of risk. If you would invest 681.00 in Telecom Argentina SA on October 12, 2024 and sell it today you would earn a total of 719.00 from holding Telecom Argentina SA or generate 105.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telecom Argentina SA vs. Apollo Investment Corp
Performance |
| Timeline |
| Telecom Argentina |
| Apollo Investment Corp |
Telecom Argentina and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecom Argentina and Apollo Investment
The main advantage of trading using opposite Telecom Argentina and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom Argentina position performs unexpectedly, Apollo Investment 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 Investment will offset losses from the drop in Apollo Investment's long position.| Telecom Argentina vs. Apollo Investment Corp | Telecom Argentina vs. Gladstone Investment | Telecom Argentina vs. SINGAPORE AIRLINES | Telecom Argentina vs. Nok Airlines PCL |
| Apollo Investment vs. AOI Electronics Co | Apollo Investment vs. Nucletron Electronic Aktiengesellschaft | Apollo Investment vs. Benchmark Electronics | Apollo Investment vs. alstria office REIT AG |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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