Correlation Between Apollo Medical and Advanced Medical

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

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

Diversification Opportunities for Apollo Medical and Advanced Medical

-0.6

Correlation Coefficient

Apollo Medical  Advanced Medical

Excellent diversification

The 3 months correlation between Apollo and Advanced is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and Apollo Medical 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 Medical Holdings are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of Apollo Medical i.e., Apollo Medical and Advanced Medical go up and down completely randomly.

Pair Corralation between Apollo Medical and Advanced Medical

Assuming the 90 days horizon Apollo Medical Holdings is expected to under-perform the Advanced Medical. In addition to that, Apollo Medical is 1.2 times more volatile than Advanced Medical Solutions. It trades about -0.12 of its total potential returns per unit of risk. Advanced Medical Solutions is currently generating about 0.1 per unit of volatility. If you would invest  206.00  in Advanced Medical Solutions on April 23, 2025 and sell it today you would earn a total of  30.00  from holding Advanced Medical Solutions or generate 14.56% return on investment over 90 days.

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

Apollo Medical Holdings  vs.  Advanced Medical Solutions

Apollo Medical Holdings

Risk-Adjusted Performance

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Advanced Medical Sol

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Medical Solutions are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Advanced Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Medical and Advanced Medical

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

The idea behind Apollo Medical Holdings and Advanced Medical Solutions 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.