Correlation Between Post Holdings and Apollo Strategic

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

By analyzing existing cross correlation between Post Holdings Partnering and Apollo Strategic Growth, you can compare the effects of market volatilities on Post Holdings and Apollo Strategic 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 Post Holdings with a short position of Apollo Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Post Holdings and Apollo Strategic.

Diversification Opportunities for Post Holdings and Apollo Strategic

0.66

Correlation Coefficient

Post Holdings  Apollo Strategic

Poor diversification

The 3 months correlation between Post and Apollo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Post Holdings Partnering and Apollo Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Strategic Growth and Post Holdings 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 Post Holdings Partnering are associated (or correlated) with Apollo Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Strategic Growth has no effect on the direction of Post Holdings i.e., Post Holdings and Apollo Strategic go up and down completely randomly.

Pair Corralation between Post Holdings and Apollo Strategic

Given the investment horizon of 90 days Post Holdings Partnering is expected to generate 0.73 times more return on investment than Apollo Strategic. However, Post Holdings Partnering is 1.37 times less risky than Apollo Strategic. It trades about 0.17 of its potential returns per unit of risk. Apollo Strategic Growth is currently generating about 0.11 per unit of risk. If you would invest  995.00  in Post Holdings Partnering on September 29, 2024 and sell it today you would earn a total of  28.00  from holding Post Holdings Partnering or generate 2.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	72.06%
Values	Daily Returns

Post Holdings Partnering  vs.  Apollo Strategic Growth

Post Holdings Partnering

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Post Holdings Partnering has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Post Holdings is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Apollo Strategic Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Strategic Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Apollo Strategic is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Post Holdings and Apollo Strategic

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

The idea behind Post Holdings Partnering and Apollo Strategic Growth 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.