Correlation Between Apollo Medical and Dürr Aktiengesellscha

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

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

Diversification Opportunities for Apollo Medical and Dürr Aktiengesellscha

0.4

Correlation Coefficient

Apollo Medical  Dürr Aktiengesellscha

Very weak diversification

The 3 months correlation between Apollo and Dürr is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Medical Holdings and Drr Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Drr Aktiengesellschaft and Apollo 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 Apollo Medical Holdings are associated (or correlated) with Dürr Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Drr Aktiengesellschaft has no effect on the direction of Apollo Medical i.e., Apollo Medical and Dürr Aktiengesellscha go up and down completely randomly.

Pair Corralation between Apollo Medical and Dürr Aktiengesellscha

Assuming the 90 days horizon Apollo Medical Holdings is expected to generate 1.07 times more return on investment than Dürr Aktiengesellscha. However, Apollo Medical is 1.07 times more volatile than Drr Aktiengesellschaft. It trades about 0.03 of its potential returns per unit of risk. Drr Aktiengesellschaft is currently generating about -0.02 per unit of risk. If you would invest  2,798  in Apollo Medical Holdings on September 15, 2024 and sell it today you would earn a total of  822.00  from holding Apollo Medical Holdings or generate 29.38% return on investment over 90 days.

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

Apollo Medical Holdings  vs.  Drr Aktiengesellschaft

Apollo Medical Holdings

Risk-Adjusted Performance

1 of 100

Weak

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

Drr Aktiengesellschaft

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Drr Aktiengesellschaft are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Dürr Aktiengesellscha unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Medical and Dürr Aktiengesellscha

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

The idea behind Apollo Medical Holdings and Drr Aktiengesellschaft 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.