Correlation Between Apollo Bancorp and Community Heritage

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

By analyzing existing cross correlation between Apollo Bancorp and Community Heritage Financial, you can compare the effects of market volatilities on Apollo Bancorp and Community Heritage 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 Community Heritage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and Community Heritage.

Diversification Opportunities for Apollo Bancorp and Community Heritage

0.49

Correlation Coefficient

Apollo Bancorp  Community Heritage

Very weak diversification

The 3 months correlation between Apollo and Community is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp and Community Heritage Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Community Heritage 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 Community Heritage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Community Heritage has no effect on the direction of Apollo Bancorp i.e., Apollo Bancorp and Community Heritage go up and down completely randomly.

Pair Corralation between Apollo Bancorp and Community Heritage

Given the investment horizon of 90 days Apollo Bancorp is expected to generate 1.95 times more return on investment than Community Heritage. However, Apollo Bancorp is 1.95 times more volatile than Community Heritage Financial. It trades about 0.14 of its potential returns per unit of risk. Community Heritage Financial is currently generating about 0.22 per unit of risk. If you would invest  3,845  in Apollo Bancorp on May 7, 2025 and sell it today you would earn a total of  606.00  from holding Apollo Bancorp or generate 15.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Apollo Bancorp  vs.  Community Heritage Financial

Apollo Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Bancorp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak essential indicators, Apollo Bancorp displayed solid returns over the last few months and may actually be approaching a breakup point.

Community Heritage

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Community Heritage Financial are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical indicators, Community Heritage reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Bancorp and Community Heritage

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

The idea behind Apollo Bancorp and Community Heritage Financial 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.