Correlation Between Optimum International and Ivy Apollo
Can any of the company-specific risk be diversified away by investing in both Optimum International and Ivy Apollo 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 Optimum International and Ivy Apollo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optimum International Fund and Ivy Apollo Multi Asset, you can compare the effects of market volatilities on Optimum International and Ivy Apollo 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 Optimum International with a short position of Ivy Apollo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optimum International and Ivy Apollo.
Diversification Opportunities for Optimum International and Ivy Apollo
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Optimum and Ivy is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Optimum International Fund and Ivy Apollo Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Apollo Multi and Optimum International 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 Optimum International Fund are associated (or correlated) with Ivy Apollo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Apollo Multi has no effect on the direction of Optimum International i.e., Optimum International and Ivy Apollo go up and down completely randomly.
Pair Corralation between Optimum International and Ivy Apollo
Assuming the 90 days horizon Optimum International Fund is expected to generate 1.84 times more return on investment than Ivy Apollo. However, Optimum International is 1.84 times more volatile than Ivy Apollo Multi Asset. It trades about 0.08 of its potential returns per unit of risk. Ivy Apollo Multi Asset is currently generating about -0.06 per unit of risk. If you would invest 1,349 in Optimum International Fund on March 22, 2025 and sell it today you would earn a total of 89.00 from holding Optimum International Fund or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optimum International Fund vs. Ivy Apollo Multi Asset
Performance |
| Timeline |
| Optimum International |
| Ivy Apollo Multi |
Optimum International and Ivy Apollo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optimum International and Ivy Apollo
The main advantage of trading using opposite Optimum International and Ivy Apollo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optimum International position performs unexpectedly, Ivy Apollo 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 Ivy Apollo will offset losses from the drop in Ivy Apollo's long position.| Optimum International vs. The Equity Growth | Optimum International vs. Templeton Growth Fund | Optimum International vs. The Hartford Growth | Optimum International vs. Transamerica Capital Growth |
| Ivy Apollo vs. Us Government Securities | Ivy Apollo vs. Intermediate Government Bond | Ivy Apollo vs. Northern Short Intermediate Government | Ivy Apollo vs. Inverse Government Long |
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..
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |