Correlation Between Lee Enterprises and Apollo Healthcare

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

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

Diversification Opportunities for Lee Enterprises and Apollo Healthcare

0.0

Correlation Coefficient

Lee Enterprises  Apollo Healthcare

Pay attention - limited upside

The 3 months correlation between Lee and Apollo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lee Enterprises Incorporated and Apollo Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Healthcare Corp and Lee Enterprises 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 Lee Enterprises Incorporated are associated (or correlated) with Apollo Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Healthcare Corp has no effect on the direction of Lee Enterprises i.e., Lee Enterprises and Apollo Healthcare go up and down completely randomly.

Pair Corralation between Lee Enterprises and Apollo Healthcare

If you would invest (100.00) in Apollo Healthcare Corp on January 24, 2024 and sell it today you would earn a total of  100.00  from holding Apollo Healthcare Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lee Enterprises Incorporated  vs.  Apollo Healthcare Corp

Lee Enterprises rporated

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lee Enterprises Incorporated are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Lee Enterprises exhibited solid returns over the last few months and may actually be approaching a breakup point.

Apollo Healthcare Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Healthcare Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Apollo Healthcare is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Lee Enterprises and Apollo Healthcare

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

The idea behind Lee Enterprises Incorporated and Apollo Healthcare 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.