Correlation Between Apollo Investment and Zanaga Iron
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Zanaga Iron 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 Apollo Investment and Zanaga Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Investment Corp and Zanaga Iron Ore, you can compare the effects of market volatilities on Apollo Investment and Zanaga Iron 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 Apollo Investment with a short position of Zanaga Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Zanaga Iron.
Diversification Opportunities for Apollo Investment and Zanaga Iron
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apollo and Zanaga is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Zanaga Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zanaga Iron Ore and Apollo Investment 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 Apollo Investment Corp are associated (or correlated) with Zanaga Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zanaga Iron Ore has no effect on the direction of Apollo Investment i.e., Apollo Investment and Zanaga Iron go up and down completely randomly.
Pair Corralation between Apollo Investment and Zanaga Iron
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.28 times more return on investment than Zanaga Iron. However, Apollo Investment Corp is 3.63 times less risky than Zanaga Iron. It trades about 0.19 of its potential returns per unit of risk. Zanaga Iron Ore is currently generating about -0.01 per unit of risk. If you would invest 984.00 in Apollo Investment Corp on April 20, 2025 and sell it today you would earn a total of 147.00 from holding Apollo Investment Corp or generate 14.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Apollo Investment Corp vs. Zanaga Iron Ore
Performance |
Timeline |
Apollo Investment Corp |
Zanaga Iron Ore |
Apollo Investment and Zanaga Iron Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apollo Investment and Zanaga Iron
The main advantage of trading using opposite Apollo Investment and Zanaga Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Zanaga Iron 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 Zanaga Iron will offset losses from the drop in Zanaga Iron's long position.Apollo Investment vs. Xinhua Winshare Publishing | Apollo Investment vs. Hope Education Group | Apollo Investment vs. PULSION Medical Systems | Apollo Investment vs. IMAGIN MEDICAL INC |
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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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