Correlation Between Apollo Global and Brookfield Corp
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Brookfield Corp 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 Brookfield Corp 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 Brookfield Corp, you can compare the effects of market volatilities on Apollo Global and Brookfield Corp 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 Brookfield Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Brookfield Corp.
Diversification Opportunities for Apollo Global and Brookfield Corp
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Brookfield is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Brookfield Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield 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 Brookfield Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Brookfield Corp go up and down completely randomly.
Pair Corralation between Apollo Global and Brookfield Corp
Considering the 90-day investment horizon Apollo Global Management is expected to under-perform the Brookfield Corp. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Global Management is 1.07 times less risky than Brookfield Corp. The stock trades about -0.07 of its potential returns per unit of risk. The Brookfield Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 5,818 in Brookfield Corp on November 18, 2024 and sell it today you would earn a total of 274.00 from holding Brookfield Corp or generate 4.71% 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. Brookfield Corp
Performance |
| Timeline |
| Apollo Global Management |
| Brookfield Corp |
Apollo Global and Brookfield Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Brookfield Corp
The main advantage of trading using opposite Apollo Global and Brookfield Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Brookfield Corp 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 Brookfield Corp will offset losses from the drop in Brookfield Corp's long position.| Apollo Global vs. Carlyle Group | Apollo Global vs. Blackstone Group | Apollo Global vs. Brookfield Asset Management | Apollo Global vs. Ares Management LP |
| Brookfield Corp vs. Horizon Space Acquisition | Brookfield Corp vs. Erayak Power Solution | Brookfield Corp vs. AlphaTime Acquisition Corp | Brookfield Corp vs. Israel Acquisitions Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |