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

Top Frontier  Apollo Global

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 8, 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

Top Frontier Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Top Frontier Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Top Frontier 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 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.

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.

The idea behind Top Frontier Investment 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.