Correlation Between Apollo Investment and QIIWI GAMES

Can any of the company-specific risk be diversified away by investing in both Apollo Investment and QIIWI GAMES 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 Apollo Investment and QIIWI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apollo Investment Corp and QIIWI GAMES AB, you can compare the effects of market volatilities on Apollo Investment and QIIWI GAMES 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 Apollo Investment with a short position of QIIWI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and QIIWI GAMES.

Diversification Opportunities for Apollo Investment and QIIWI GAMES

0.7

Correlation Coefficient

Apollo Investment  QIIWI GAMES

Poor diversification

The 3 months correlation between Apollo and QIIWI is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and QIIWI GAMES AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QIIWI GAMES AB and Apollo Investment 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 Apollo Investment Corp are associated (or correlated) with QIIWI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QIIWI GAMES AB has no effect on the direction of Apollo Investment i.e., Apollo Investment and QIIWI GAMES go up and down completely randomly.

Pair Corralation between Apollo Investment and QIIWI GAMES

Assuming the 90 days trading horizon Apollo Investment is expected to generate 57.7 times less return on investment than QIIWI GAMES. But when comparing it to its historical volatility, Apollo Investment Corp is 7.76 times less risky than QIIWI GAMES. It trades about 0.05 of its potential returns per unit of risk. QIIWI GAMES AB is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  20.00  in QIIWI GAMES AB on September 21, 2024 and sell it today you would earn a total of  10.00  from holding QIIWI GAMES AB or generate 50.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Apollo Investment Corp  vs.  QIIWI GAMES AB

Apollo Investment Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Investment Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Apollo Investment may actually be approaching a critical reversion point that can send shares even higher in January 2025.

QIIWI GAMES AB

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in QIIWI GAMES AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, QIIWI GAMES reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Investment and QIIWI GAMES

The main advantage of trading using opposite Apollo Investment and QIIWI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, QIIWI GAMES 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 QIIWI GAMES will offset losses from the drop in QIIWI GAMES's long position.

The idea behind Apollo Investment Corp and QIIWI GAMES AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.