Correlation Between CSSC Offshore and Apollo Investment

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

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

Diversification Opportunities for CSSC Offshore and Apollo Investment

0.41

Correlation Coefficient

CSSC Offshore  Apollo Investment

Very weak diversification

The 3 months correlation between CSSC and Apollo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine 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 CSSC Offshore 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 CSSC Offshore Marine 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 CSSC Offshore i.e., CSSC Offshore and Apollo Investment go up and down completely randomly.

Pair Corralation between CSSC Offshore and Apollo Investment

Assuming the 90 days trading horizon CSSC Offshore is expected to generate 19.81 times less return on investment than Apollo Investment. But when comparing it to its historical volatility, CSSC Offshore Marine is 11.83 times less risky than Apollo Investment. It trades about 0.13 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	98.44%
Values	Daily Returns

CSSC Offshore Marine  vs.  Apollo Investment Corp

CSSC Offshore Marine

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CSSC Offshore Marine are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CSSC Offshore is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 CSSC Offshore and Apollo Investment

The main advantage of trading using opposite CSSC Offshore and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore 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 CSSC Offshore Marine 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.