Correlation Between Top Frontier and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Top Frontier 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 Top Frontier and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Top Frontier Investment and Apollo Global Capital, you can compare the effects of market volatilities on Top Frontier 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 Top Frontier with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Top Frontier and Apollo Global.
Diversification Opportunities for Top Frontier and Apollo Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Top and Apollo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Top Frontier Investment 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 Top Frontier 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 Top Frontier Investment 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 Top Frontier i.e., Top Frontier and Apollo Global go up and down completely randomly.
Pair Corralation between Top Frontier and Apollo Global
Assuming the 90 days trading horizon Top Frontier Investment is expected to generate 1.53 times more return on investment than Apollo Global. However, Top Frontier is 1.53 times more volatile than Apollo Global Capital. It trades about -0.01 of its potential returns per unit of risk. Apollo Global Capital is currently generating about -0.29 per unit of risk. If you would invest 6,700 in Top Frontier Investment on September 9, 2024 and sell it today you would lose (480.00) from holding Top Frontier Investment or give up 7.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.38% |
Values | Daily Returns |
Top Frontier Investment vs. Apollo Global Capital
Performance |
Timeline |
Top Frontier Investment |
Apollo Global Capital |
Top Frontier and Apollo Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Top Frontier and Apollo Global
The main advantage of trading using opposite Top Frontier and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Top Frontier 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.Top Frontier vs. Crown Asia Chemicals | Top Frontier vs. Figaro Coffee Group | Top Frontier vs. Transpacific Broadband Group | Top Frontier vs. Philex Mining Corp |
Apollo Global vs. National Reinsurance | Apollo Global vs. SM Investments Corp | Apollo Global vs. Jollibee Foods Corp | Apollo Global vs. Atlas 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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