Correlation Between Affiliated Managers and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Affiliated Managers and Apollo Global 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 Affiliated Managers and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affiliated Managers Group and Apollo Global Management, you can compare the effects of market volatilities on Affiliated Managers and Apollo Global 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 Affiliated Managers with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Managers and Apollo Global.
Diversification Opportunities for Affiliated Managers and Apollo Global
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Affiliated and Apollo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers Group and Apollo Global Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Management and Affiliated Managers 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 Affiliated Managers Group are associated (or correlated) with Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Management has no effect on the direction of Affiliated Managers i.e., Affiliated Managers and Apollo Global go up and down completely randomly.
Pair Corralation between Affiliated Managers and Apollo Global
Considering the 90-day investment horizon Affiliated Managers Group is expected to under-perform the Apollo Global. But the stock apears to be less risky and, when comparing its historical volatility, Affiliated Managers Group is 1.24 times less risky than Apollo Global. The stock trades about -0.02 of its potential returns per unit of risk. The Apollo Global Management is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 14,313 in Apollo Global Management on August 24, 2024 and sell it today you would earn a total of 2,189 from holding Apollo Global Management or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Affiliated Managers Group vs. Apollo Global Management
Performance |
| Timeline |
| Affiliated Managers |
| Apollo Global Management |
Affiliated Managers and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affiliated Managers and Apollo Global
The main advantage of trading using opposite Affiliated Managers and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Managers position performs unexpectedly, Apollo Global 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 Global will offset losses from the drop in Apollo Global's long position.| Affiliated Managers vs. Brightsphere Investment Group | Affiliated Managers vs. Franklin Templeton Limited | Affiliated Managers vs. Blackrock Muni Intermediate | Affiliated Managers vs. Munivest Fund |
| Apollo Global vs. Invesco Advantage MIT | Apollo Global vs. Invesco Municipal Trust | Apollo Global vs. Invesco California Value | Apollo Global vs. Victory Capital Holdings |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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