Correlation Between Apollo Global and Semirara Mining

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

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

Diversification Opportunities for Apollo Global and Semirara Mining

-0.65

Correlation Coefficient

Apollo Global  Semirara Mining

Excellent diversification

The 3 months correlation between Apollo and Semirara is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and Semirara Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semirara Mining Corp and Apollo Global 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 Global Capital are associated (or correlated) with Semirara Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semirara Mining Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Semirara Mining go up and down completely randomly.

Pair Corralation between Apollo Global and Semirara Mining

Assuming the 90 days trading horizon Apollo Global Capital is expected to under-perform the Semirara Mining. In addition to that, Apollo Global is 2.46 times more volatile than Semirara Mining Corp. It trades about -0.27 of its total potential returns per unit of risk. Semirara Mining Corp is currently generating about 0.05 per unit of volatility. If you would invest  3,134  in Semirara Mining Corp on September 5, 2024 and sell it today you would earn a total of  96.00  from holding Semirara Mining Corp or generate 3.06% return on investment over 90 days.

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

Apollo Global Capital  vs.  Semirara Mining Corp

Apollo Global Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Global Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Semirara Mining Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Semirara Mining Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Semirara Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Apollo Global and Semirara Mining

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

The idea behind Apollo Global Capital and Semirara Mining Corp 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.