Correlation Between Apollo Food and MyTech Group
Can any of the company-specific risk be diversified away by investing in both Apollo Food and MyTech Group 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 Food and MyTech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Food Holdings and MyTech Group Bhd, you can compare the effects of market volatilities on Apollo Food and MyTech Group 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 Food with a short position of MyTech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Food and MyTech Group.
Diversification Opportunities for Apollo Food and MyTech Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apollo and MyTech is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Food Holdings and MyTech Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyTech Group Bhd and Apollo Food 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 Food Holdings are associated (or correlated) with MyTech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyTech Group Bhd has no effect on the direction of Apollo Food i.e., Apollo Food and MyTech Group go up and down completely randomly.
Pair Corralation between Apollo Food and MyTech Group
Assuming the 90 days trading horizon Apollo Food Holdings is expected to generate 0.37 times more return on investment than MyTech Group. However, Apollo Food Holdings is 2.73 times less risky than MyTech Group. It trades about 0.11 of its potential returns per unit of risk. MyTech Group Bhd is currently generating about 0.01 per unit of risk. If you would invest 646.00 in Apollo Food Holdings on September 13, 2024 and sell it today you would earn a total of 55.00 from holding Apollo Food Holdings or generate 8.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Apollo Food Holdings vs. MyTech Group Bhd
Performance |
Timeline |
Apollo Food Holdings |
MyTech Group Bhd |
Apollo Food and MyTech Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apollo Food and MyTech Group
The main advantage of trading using opposite Apollo Food and MyTech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Food position performs unexpectedly, MyTech Group 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 MyTech Group will offset losses from the drop in MyTech Group's long position.Apollo Food vs. Nestle Bhd | Apollo Food vs. British American Tobacco | Apollo Food vs. FARM FRESH BERHAD | Apollo Food vs. Kawan Food Bhd |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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