Correlation Between Apollo Investment and CSSC Offshore

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

Diversification Opportunities for Apollo Investment and CSSC Offshore

0.04

Correlation Coefficient

Apollo Investment  CSSC Offshore

Significant diversification

The 3 months correlation between Apollo and CSSC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Apollo Investment i.e., Apollo Investment and CSSC Offshore go up and down completely randomly.

Pair Corralation between Apollo Investment and CSSC Offshore

Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 12.38 times more return on investment than CSSC Offshore. However, Apollo Investment is 12.38 times more volatile than CSSC Offshore Marine. It trades about 0.02 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.12 per unit of risk. If you would invest  1,070  in Apollo Investment Corp on May 11, 2025 and sell it today you would earn a total of  11.00  from holding Apollo Investment Corp or generate 1.03% return on investment over 90 days.

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

Apollo Investment Corp  vs.  CSSC Offshore Marine

Apollo Investment Corp

Risk-Adjusted Performance

Weak

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

CSSC Offshore Marine

Risk-Adjusted Performance

Fair

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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Apollo Investment and CSSC Offshore

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

The idea behind Apollo Investment Corp and CSSC Offshore Marine 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.