Correlation Between Apollo Investment and Seven I

Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Seven I 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 Seven I 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 Seven i Holdings, you can compare the effects of market volatilities on Apollo Investment and Seven I 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 Seven I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Seven I.

Diversification Opportunities for Apollo Investment and Seven I

-0.02

Correlation Coefficient

Apollo Investment  Seven I

Good diversification

The 3 months correlation between Apollo and Seven is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and Seven i Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seven i Holdings 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 Seven I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seven i Holdings has no effect on the direction of Apollo Investment i.e., Apollo Investment and Seven I go up and down completely randomly.

Pair Corralation between Apollo Investment and Seven I

Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.69 times more return on investment than Seven I. However, Apollo Investment Corp is 1.44 times less risky than Seven I. It trades about 0.2 of its potential returns per unit of risk. Seven i Holdings is currently generating about -0.12 per unit of risk. If you would invest  997.00  in Apollo Investment Corp on April 23, 2025 and sell it today you would earn a total of  159.00  from holding Apollo Investment Corp or generate 15.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Apollo Investment Corp  vs.  Seven i 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 15 (%) 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.

Seven i Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seven i 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.

Pair Trading with Apollo Investment and Seven I

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

The idea behind Apollo Investment Corp and Seven i 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.