Correlation Between Dito CME and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Dito CME and Apollo Global 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 Dito CME and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dito CME Holdings and Apollo Global Capital, you can compare the effects of market volatilities on Dito CME and Apollo Global 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 Dito CME with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dito CME and Apollo Global.
Diversification Opportunities for Dito CME and Apollo Global
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dito and Apollo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dito CME Holdings and Apollo Global Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Capital and Dito CME 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 Dito CME Holdings are associated (or correlated) with Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Capital has no effect on the direction of Dito CME i.e., Dito CME and Apollo Global go up and down completely randomly.
Pair Corralation between Dito CME and Apollo Global
Assuming the 90 days trading horizon Dito CME Holdings is expected to under-perform the Apollo Global. But the stock apears to be less risky and, when comparing its historical volatility, Dito CME Holdings is 1.85 times less risky than Apollo Global. The stock trades about -0.16 of its potential returns per unit of risk. The Apollo Global Capital is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.43 in Apollo Global Capital on December 30, 2024 and sell it today you would lose (0.01) from holding Apollo Global Capital or give up 2.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Dito CME Holdings vs. Apollo Global Capital
Performance |
Timeline |
Dito CME Holdings |
Apollo Global Capital |
Dito CME and Apollo Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dito CME and Apollo Global
The main advantage of trading using opposite Dito CME and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dito CME position performs unexpectedly, Apollo Global 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 Global will offset losses from the drop in Apollo Global's long position.Dito CME vs. Semirara Mining Corp | Dito CME vs. Prime Media Holdings | Dito CME vs. Converge Information Communications | Dito CME vs. Rizal Commercial Banking |
Apollo Global vs. House of Investments | Apollo Global vs. Atlas Consolidated Mining | Apollo Global vs. Megawide Construction Corp | Apollo Global vs. Lepanto Consolidated Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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