Correlation Between TITANIUM TRANSPORTGROUP and Apollo Medical

Can any of the company-specific risk be diversified away by investing in both TITANIUM TRANSPORTGROUP and Apollo Medical 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 TITANIUM TRANSPORTGROUP and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TITANIUM TRANSPORTGROUP and Apollo Medical Holdings, you can compare the effects of market volatilities on TITANIUM TRANSPORTGROUP and Apollo Medical 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 TITANIUM TRANSPORTGROUP with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TITANIUM TRANSPORTGROUP and Apollo Medical.

Diversification Opportunities for TITANIUM TRANSPORTGROUP and Apollo Medical

0.55

Correlation Coefficient

TITANIUM TRANSPORTGROUP  Apollo Medical

Very weak diversification

The 3 months correlation between TITANIUM and Apollo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding TITANIUM TRANSPORTGROUP and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings and TITANIUM TRANSPORTGROUP 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 TITANIUM TRANSPORTGROUP are associated (or correlated) with Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of TITANIUM TRANSPORTGROUP i.e., TITANIUM TRANSPORTGROUP and Apollo Medical go up and down completely randomly.

Pair Corralation between TITANIUM TRANSPORTGROUP and Apollo Medical

Assuming the 90 days horizon TITANIUM TRANSPORTGROUP is expected to generate 1.38 times more return on investment than Apollo Medical. However, TITANIUM TRANSPORTGROUP is 1.38 times more volatile than Apollo Medical Holdings. It trades about 0.08 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about -0.07 per unit of risk. If you would invest  137.00  in TITANIUM TRANSPORTGROUP on September 25, 2024 and sell it today you would earn a total of  14.00  from holding TITANIUM TRANSPORTGROUP or generate 10.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

TITANIUM TRANSPORTGROUP  vs.  Apollo Medical Holdings

TITANIUM TRANSPORTGROUP

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TITANIUM TRANSPORTGROUP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TITANIUM TRANSPORTGROUP may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Apollo Medical Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Medical Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with TITANIUM TRANSPORTGROUP and Apollo Medical

The main advantage of trading using opposite TITANIUM TRANSPORTGROUP and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TITANIUM TRANSPORTGROUP position performs unexpectedly, Apollo Medical 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 Medical will offset losses from the drop in Apollo Medical's long position.

The idea behind TITANIUM TRANSPORTGROUP and Apollo Medical Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.