Correlation Between ALBIS LEASING and Apollo Investment

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

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

Diversification Opportunities for ALBIS LEASING and Apollo Investment

0.45

Correlation Coefficient

ALBIS LEASING  Apollo Investment

Very weak diversification

The 3 months correlation between ALBIS and Apollo is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and ALBIS LEASING 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 ALBIS LEASING AG are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Apollo Investment go up and down completely randomly.

Pair Corralation between ALBIS LEASING and Apollo Investment

Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 1.04 times less return on investment than Apollo Investment. But when comparing it to its historical volatility, ALBIS LEASING AG is 1.38 times less risky than Apollo Investment. It trades about 0.28 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  984.00  in Apollo Investment Corp on April 22, 2025 and sell it today you would earn a total of  172.00  from holding Apollo Investment Corp or generate 17.48% return on investment over 90 days.

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

ALBIS LEASING AG  vs.  Apollo Investment Corp

ALBIS LEASING AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ALBIS LEASING AG are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, ALBIS LEASING unveiled solid returns over the last few months and may actually be approaching a breakup point.

Apollo Investment Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Investment Corp are ranked lower than 16 (%) 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.

Pair Trading with ALBIS LEASING and Apollo Investment

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

The idea behind ALBIS LEASING AG and Apollo Investment Corp 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.