Correlation Between Apollo Investment and Check Point
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Check Point 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 Check Point 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 Check Point Software, you can compare the effects of market volatilities on Apollo Investment and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Check Point.
Diversification Opportunities for Apollo Investment and Check Point
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apollo and Check is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of Apollo Investment i.e., Apollo Investment and Check Point go up and down completely randomly.
Pair Corralation between Apollo Investment and Check Point
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.85 times more return on investment than Check Point. However, Apollo Investment Corp is 1.18 times less risky than Check Point. It trades about 0.12 of its potential returns per unit of risk. Check Point Software is currently generating about 0.05 per unit of risk. If you would invest 1,024 in Apollo Investment Corp on April 25, 2025 and sell it today you would earn a total of 99.00 from holding Apollo Investment Corp or generate 9.67% 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. Check Point Software
Performance |
Timeline |
Apollo Investment Corp |
Check Point Software |
Apollo Investment and Check Point Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apollo Investment and Check Point
The main advantage of trading using opposite Apollo Investment and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.Apollo Investment vs. Morgan Stanley | Apollo Investment vs. The Charles Schwab | Apollo Investment vs. The Goldman Sachs | Apollo Investment vs. The Goldman Sachs |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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