Correlation Between Apollo Investment and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Austevoll Seafood 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 Austevoll Seafood 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 Austevoll Seafood ASA, you can compare the effects of market volatilities on Apollo Investment and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Austevoll Seafood.
Diversification Opportunities for Apollo Investment and Austevoll Seafood
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apollo and Austevoll is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Apollo Investment i.e., Apollo Investment and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Apollo Investment and Austevoll Seafood
Assuming the 90 days trading horizon Apollo Investment is expected to generate 7.3 times less return on investment than Austevoll Seafood. But when comparing it to its historical volatility, Apollo Investment Corp is 2.06 times less risky than Austevoll Seafood. It trades about 0.01 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 856.00 in Austevoll Seafood ASA on November 30, 2024 and sell it today you would earn a total of 49.00 from holding Austevoll Seafood ASA or generate 5.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Apollo Investment Corp vs. Austevoll Seafood ASA
Performance |
Timeline |
Apollo Investment Corp |
Austevoll Seafood ASA |
Apollo Investment and Austevoll Seafood Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apollo Investment and Austevoll Seafood
The main advantage of trading using opposite Apollo Investment and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.Apollo Investment vs. Sligro Food Group | Apollo Investment vs. BG Foods | Apollo Investment vs. Caseys General Stores | Apollo Investment vs. EBRO FOODS |
Austevoll Seafood vs. Platinum Investment Management | Austevoll Seafood vs. Mobilezone Holding AG | Austevoll Seafood vs. Cleanaway Waste Management | Austevoll Seafood vs. FIH MOBILE |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |