Correlation Between Apollo Bancorp and Abrdn Emerging

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp and Abrdn Emerging 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 Bancorp and Abrdn Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Bancorp and Abrdn Emerging Markets, you can compare the effects of market volatilities on Apollo Bancorp and Abrdn Emerging 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 Bancorp with a short position of Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and Abrdn Emerging.

Diversification Opportunities for Apollo Bancorp and Abrdn Emerging

0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Apollo and Abrdn is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp and Abrdn Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Emerging Markets and Apollo Bancorp 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 Bancorp are associated (or correlated) with Abrdn Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Emerging Markets has no effect on the direction of Apollo Bancorp i.e., Apollo Bancorp and Abrdn Emerging go up and down completely randomly.

Pair Corralation between Apollo Bancorp and Abrdn Emerging

If you would invest  524.00  in Abrdn Emerging Markets on April 22, 2024 and sell it today you would earn a total of  8.00  from holding Abrdn Emerging Markets or generate 1.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Apollo Bancorp  vs.  Abrdn Emerging Markets

 Performance 
       Timeline  
Apollo Bancorp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Apollo Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Apollo Bancorp is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Abrdn Emerging Markets 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Abrdn Emerging Markets are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Abrdn Emerging may actually be approaching a critical reversion point that can send shares even higher in August 2024.

Apollo Bancorp and Abrdn Emerging Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apollo Bancorp and Abrdn Emerging

The main advantage of trading using opposite Apollo Bancorp and Abrdn Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp position performs unexpectedly, Abrdn Emerging 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 Abrdn Emerging will offset losses from the drop in Abrdn Emerging's long position.
The idea behind Apollo Bancorp and Abrdn Emerging Markets 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.
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
CEOs Directory
Screen CEOs from public companies around the world
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.