Correlation Between Allhome Corp and Apollo Global

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

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

Diversification Opportunities for Allhome Corp and Apollo Global

-0.27

Correlation Coefficient

Allhome Corp  Apollo Global

Very good diversification

The 3 months correlation between Allhome and Apollo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Allhome Corp 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 Allhome Corp 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 Allhome Corp 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 Allhome Corp i.e., Allhome Corp and Apollo Global go up and down completely randomly.

Pair Corralation between Allhome Corp and Apollo Global

Assuming the 90 days trading horizon Allhome Corp is expected to generate 0.91 times more return on investment than Apollo Global. However, Allhome Corp is 1.1 times less risky than Apollo Global. It trades about 0.02 of its potential returns per unit of risk. Apollo Global Capital is currently generating about -0.26 per unit of risk. If you would invest  64.00  in Allhome Corp on September 3, 2024 and sell it today you would earn a total of  1.00  from holding Allhome Corp or generate 1.56% return on investment over 90 days.

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

Allhome Corp  vs.  Apollo Global Capital

Allhome Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Allhome Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Allhome Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

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 weak 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.

Pair Trading with Allhome Corp and Apollo Global

The main advantage of trading using opposite Allhome Corp and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allhome Corp 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.

The idea behind Allhome Corp and Apollo Global Capital 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.