Correlation Between SPECTRAL MEDICAL and Apollo Investment

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

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

Diversification Opportunities for SPECTRAL MEDICAL and Apollo Investment

0.37

Correlation Coefficient

SPECTRAL MEDICAL  Apollo Investment

Weak diversification

The 3 months correlation between SPECTRAL and Apollo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SPECTRAL MEDICAL 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 SPECTRAL 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 SPECTRAL MEDICAL 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 SPECTRAL MEDICAL i.e., SPECTRAL MEDICAL and Apollo Investment go up and down completely randomly.

Pair Corralation between SPECTRAL MEDICAL and Apollo Investment

Assuming the 90 days horizon SPECTRAL MEDICAL is expected to generate 4.45 times less return on investment than Apollo Investment. In addition to that, SPECTRAL MEDICAL is 1.89 times more volatile than Apollo Investment Corp. It trades about 0.02 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.21 per unit of volatility. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

SPECTRAL MEDICAL  vs.  Apollo Investment Corp

SPECTRAL MEDICAL

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SPECTRAL MEDICAL are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SPECTRAL MEDICAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 SPECTRAL MEDICAL and Apollo Investment

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