Correlation Between Apollo Global and Elysee Development
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Elysee Development 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 Elysee Development 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 Elysee Development Corp, you can compare the effects of market volatilities on Apollo Global and Elysee Development 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 Elysee Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Elysee Development.
Diversification Opportunities for Apollo Global and Elysee Development
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Elysee is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Elysee Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elysee Development Corp 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 Elysee Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elysee Development Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Elysee Development go up and down completely randomly.
Pair Corralation between Apollo Global and Elysee Development
Considering the 90-day investment horizon Apollo Global Management is expected to generate 0.39 times more return on investment than Elysee Development. However, Apollo Global Management is 2.54 times less risky than Elysee Development. It trades about 0.33 of its potential returns per unit of risk. Elysee Development Corp is currently generating about -0.03 per unit of risk. If you would invest 12,456 in Apollo Global Management on August 30, 2024 and sell it today you would earn a total of 4,929 from holding Apollo Global Management or generate 39.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Apollo Global Management vs. Elysee Development Corp
Performance |
| Timeline |
| Apollo Global Management |
| Elysee Development Corp |
Apollo Global and Elysee Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Elysee Development
The main advantage of trading using opposite Apollo Global and Elysee Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Elysee Development 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 Elysee Development will offset losses from the drop in Elysee Development's long position.| Apollo Global vs. ClimateRock Class A | Apollo Global vs. CF Acquisition VII | Apollo Global vs. DP Cap Acquisition |
| Elysee Development vs. Blackhawk Growth Corp | Elysee Development vs. Mount Logan Capital | Elysee Development vs. Urbana | Elysee Development vs. Guardian Capital 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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