Correlation Between Apollo Investment and CK Infrastructure

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

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

Diversification Opportunities for Apollo Investment and CK Infrastructure

0.33

Correlation Coefficient

Apollo Investment  CK Infrastructure

Weak diversification

The 3 months correlation between Apollo and CHH is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and CK Infrastructure Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Infrastructure and Apollo Investment 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 Investment Corp are associated (or correlated) with CK Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Infrastructure has no effect on the direction of Apollo Investment i.e., Apollo Investment and CK Infrastructure go up and down completely randomly.

Pair Corralation between Apollo Investment and CK Infrastructure

Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.61 times more return on investment than CK Infrastructure. However, Apollo Investment Corp is 1.65 times less risky than CK Infrastructure. It trades about 0.17 of its potential returns per unit of risk. CK Infrastructure Holdings is currently generating about 0.04 per unit of risk. If you would invest  1,000.00  in Apollo Investment Corp on April 24, 2025 and sell it today you would earn a total of  137.00  from holding Apollo Investment Corp or generate 13.7% return on investment over 90 days.

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

Apollo Investment Corp  vs.  CK Infrastructure Holdings

Apollo Investment Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Investment Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Apollo Investment reported solid returns over the last few months and may actually be approaching a breakup point.

CK Infrastructure

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CK Infrastructure Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, CK Infrastructure is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Apollo Investment and CK Infrastructure

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

The idea behind Apollo Investment Corp and CK Infrastructure 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.