Correlation Between BANK OF CHINA and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both BANK OF CHINA 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 BANK OF CHINA and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK OF CHINA and Apollo Medical Holdings, you can compare the effects of market volatilities on BANK OF CHINA 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 BANK OF CHINA with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF CHINA and Apollo Medical.
Diversification Opportunities for BANK OF CHINA and Apollo Medical
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANK and Apollo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF CHINA 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 BANK OF CHINA 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 BANK OF CHINA 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 BANK OF CHINA i.e., BANK OF CHINA and Apollo Medical go up and down completely randomly.
Pair Corralation between BANK OF CHINA and Apollo Medical
Assuming the 90 days trading horizon BANK OF CHINA is expected to generate 1.79 times more return on investment than Apollo Medical. However, BANK OF CHINA is 1.79 times more volatile than Apollo Medical Holdings. It trades about 0.18 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.01 per unit of risk. If you would invest 32.00 in BANK OF CHINA on November 1, 2024 and sell it today you would earn a total of 18.00 from holding BANK OF CHINA or generate 56.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK OF CHINA vs. Apollo Medical Holdings
Performance |
| Timeline |
| BANK OF CHINA |
| Apollo Medical Holdings |
BANK OF CHINA and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK OF CHINA and Apollo Medical
The main advantage of trading using opposite BANK OF CHINA and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF CHINA 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.| BANK OF CHINA vs. USWE SPORTS AB | BANK OF CHINA vs. PLAYSTUDIOS A DL 0001 | BANK OF CHINA vs. THORNEY TECHS LTD | BANK OF CHINA vs. PLAYTECH |
| Apollo Medical vs. G III Apparel Group | Apollo Medical vs. Costco Wholesale Corp | Apollo Medical vs. Tencent Music Entertainment | Apollo Medical vs. Retail Estates NV |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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