Correlation Between Addtech AB and Apollo Investment

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

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

Diversification Opportunities for Addtech AB and Apollo Investment

0.32

Correlation Coefficient

Addtech AB  Apollo Investment

Weak diversification

The 3 months correlation between Addtech and Apollo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB 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 Addtech AB 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 Addtech AB 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 Addtech AB i.e., Addtech AB and Apollo Investment go up and down completely randomly.

Pair Corralation between Addtech AB and Apollo Investment

Assuming the 90 days trading horizon Addtech AB is expected to generate 2.84 times less return on investment than Apollo Investment. In addition to that, Addtech AB is 1.82 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 0.11 per unit of volatility. If you would invest  1,027  in Apollo Investment Corp on May 3, 2025 and sell it today you would earn a total of  82.00  from holding Apollo Investment Corp or generate 7.98% return on investment over 90 days.

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

Addtech AB  vs.  Apollo Investment Corp

Addtech AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Addtech AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Addtech AB 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

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Investment Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Apollo Investment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Addtech AB and Apollo Investment

The main advantage of trading using opposite Addtech AB and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB 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 Addtech AB 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.