Correlation Between Apollo Investment and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Apollo Investment and Goldman Sachs 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 Goldman Sachs 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 The Goldman Sachs, you can compare the effects of market volatilities on Apollo Investment and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Investment and Goldman Sachs.
Diversification Opportunities for Apollo Investment and Goldman Sachs
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Apollo and Goldman is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Investment Corp and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs has no effect on the direction of Apollo Investment i.e., Apollo Investment and Goldman Sachs go up and down completely randomly.
Pair Corralation between Apollo Investment and Goldman Sachs
Assuming the 90 days trading horizon Apollo Investment Corp is expected to generate 0.93 times more return on investment than Goldman Sachs. However, Apollo Investment Corp is 1.07 times less risky than Goldman Sachs. It trades about 0.28 of its potential returns per unit of risk. The Goldman Sachs is currently generating about -0.01 per unit of risk. If you would invest 1,217 in Apollo Investment Corp on September 12, 2024 and sell it today you would earn a total of 75.00 from holding Apollo Investment Corp or generate 6.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apollo Investment Corp vs. The Goldman Sachs
Performance |
| Timeline |
| Apollo Investment Corp |
| Goldman Sachs |
Apollo Investment and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Investment and Goldman Sachs
The main advantage of trading using opposite Apollo Investment and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Investment position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
| Goldman Sachs vs. Corporate Travel Management | Goldman Sachs vs. Waste Management | Goldman Sachs vs. ASSOC BR FOODS | Goldman Sachs vs. THAI BEVERAGE |
Check out your portfolio center.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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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