Correlation Between Advanced Medical and Apollo Medical

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

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

Diversification Opportunities for Advanced Medical and Apollo Medical

-0.65

Correlation Coefficient

Advanced Medical  Apollo Medical

Excellent diversification

The 3 months correlation between Advanced and Apollo is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Medical Solutions and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings and Advanced 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 Advanced Medical Solutions are associated (or correlated) with Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of Advanced Medical i.e., Advanced Medical and Apollo Medical go up and down completely randomly.

Pair Corralation between Advanced Medical and Apollo Medical

Assuming the 90 days trading horizon Advanced Medical Solutions is expected to generate 0.82 times more return on investment than Apollo Medical. However, Advanced Medical Solutions is 1.22 times less risky than Apollo Medical. It trades about 0.1 of its potential returns per unit of risk. Apollo Medical Holdings is currently generating about -0.1 per unit of risk. If you would invest  208.00  in Advanced Medical Solutions on April 22, 2025 and sell it today you would earn a total of  30.00  from holding Advanced Medical Solutions or generate 14.42% return on investment over 90 days.

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

Advanced Medical Solutions  vs.  Apollo Medical Holdings

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.

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 uncertain 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 Advanced Medical and Apollo Medical

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

The idea behind Advanced Medical Solutions and Apollo Medical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.