Correlation Between Apollo Global and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Ameriprise Financial 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 Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Global Management and Ameriprise Financial, you can compare the effects of market volatilities on Apollo Global and Ameriprise Financial 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 Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Ameriprise Financial.
Diversification Opportunities for Apollo Global and Ameriprise Financial
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Apollo and Ameriprise is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial 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 Management are associated (or correlated) with Ameriprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriprise Financial has no effect on the direction of Apollo Global i.e., Apollo Global and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Apollo Global and Ameriprise Financial
Considering the 90-day investment horizon Apollo Global Management is expected to generate 1.22 times more return on investment than Ameriprise Financial. However, Apollo Global is 1.22 times more volatile than Ameriprise Financial. It trades about 0.31 of its potential returns per unit of risk. Ameriprise Financial is currently generating about 0.22 per unit of risk. If you would invest 14,443 in Apollo Global Management on August 28, 2024 and sell it today you would earn a total of 3,027 from holding Apollo Global Management or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Ameriprise Financial
Performance |
| Timeline |
| Apollo Global Management |
| Ameriprise Financial |
Apollo Global and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Ameriprise Financial
The main advantage of trading using opposite Apollo Global and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Ameriprise Financial 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 Ameriprise Financial will offset losses from the drop in Ameriprise Financial's long position.| Apollo Global vs. PowerUp Acquisition Corp | Apollo Global vs. Aurora Innovation | Apollo Global vs. HUMANA INC | Apollo Global vs. Aquagold International |
| Ameriprise Financial vs. State Street Corp | Ameriprise Financial vs. Bank of New | Ameriprise Financial vs. SEI Investments | Ameriprise Financial vs. Principal Financial Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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