Correlation Between Apollo Global and Arrowmark Financial
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Arrowmark 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 Arrowmark 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 Arrowmark Financial Corp, you can compare the effects of market volatilities on Apollo Global and Arrowmark 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 Arrowmark Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Arrowmark Financial.
Diversification Opportunities for Apollo Global and Arrowmark Financial
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Arrowmark is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Arrowmark Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrowmark Financial 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 Arrowmark Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrowmark Financial Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Arrowmark Financial go up and down completely randomly.
Pair Corralation between Apollo Global and Arrowmark Financial
Considering the 90-day investment horizon Apollo Global Management is expected to generate 1.07 times more return on investment than Arrowmark Financial. However, Apollo Global is 1.07 times more volatile than Arrowmark Financial Corp. It trades about 0.11 of its potential returns per unit of risk. Arrowmark Financial Corp is currently generating about 0.04 per unit of risk. If you would invest 6,592 in Apollo Global Management on September 3, 2024 and sell it today you would earn a total of 10,642 from holding Apollo Global Management or generate 161.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Arrowmark Financial Corp
Performance |
| Timeline |
| Apollo Global Management |
| Arrowmark Financial Corp |
Apollo Global and Arrowmark Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Arrowmark Financial
The main advantage of trading using opposite Apollo Global and Arrowmark Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Arrowmark 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 Arrowmark Financial will offset losses from the drop in Arrowmark Financial's long position.| Apollo Global vs. Federated Premier Municipal | Apollo Global vs. Blackrock Muniyield | Apollo Global vs. Federated Investors B | Apollo Global vs. SEI Investments |
| Arrowmark Financial vs. Brookfield Business Corp | Arrowmark Financial vs. Elysee Development Corp | Arrowmark Financial vs. DWS Municipal Income | Arrowmark Financial vs. Blackrock Munivest |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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