Correlation Between Apollo Global and East West
Can any of the company-specific risk be diversified away by investing in both Apollo Global and East West 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 Global and East West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Global Capital and East West Banking, you can compare the effects of market volatilities on Apollo Global and East West 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 Global with a short position of East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and East West.
Diversification Opportunities for Apollo Global and East West
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and East is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and East West Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West Banking and Apollo Global 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 Global Capital are associated (or correlated) with East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Banking has no effect on the direction of Apollo Global i.e., Apollo Global and East West go up and down completely randomly.
Pair Corralation between Apollo Global and East West
Assuming the 90 days trading horizon Apollo Global Capital is expected to under-perform the East West. In addition to that, Apollo Global is 2.41 times more volatile than East West Banking. It trades about -0.29 of its total potential returns per unit of risk. East West Banking is currently generating about 0.01 per unit of volatility. If you would invest 976.00 in East West Banking on August 29, 2024 and sell it today you would earn a total of 0.00 from holding East West Banking or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Apollo Global Capital vs. East West Banking
Performance |
| Timeline |
| Apollo Global Capital |
| East West Banking |
Apollo Global and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and East West
The main advantage of trading using opposite Apollo Global and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| Apollo Global vs. East West Banking | Apollo Global vs. Asia United Bank | Apollo Global vs. Integrated Micro Electronics | Apollo Global vs. COL Financial Group |
| East West vs. STI Education Systems | East West vs. Robinsons Retail Holdings | East West vs. SM Investments Corp | East West vs. Integrated Micro Electronics |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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