Correlation Between Apollo Global and China Everbright
Can any of the company-specific risk be diversified away by investing in both Apollo Global and China Everbright 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 China Everbright 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 China Everbright Limited, you can compare the effects of market volatilities on Apollo Global and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and China Everbright.
Diversification Opportunities for Apollo Global and China Everbright
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apollo and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and China Everbright Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright has no effect on the direction of Apollo Global i.e., Apollo Global and China Everbright go up and down completely randomly.
Pair Corralation between Apollo Global and China Everbright
If you would invest 14,060 in Apollo Global Management on September 2, 2024 and sell it today you would earn a total of 3,443 from holding Apollo Global Management or generate 24.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. China Everbright Limited
Performance |
| Timeline |
| Apollo Global Management |
| China Everbright |
Apollo Global and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and China Everbright
The main advantage of trading using opposite Apollo Global and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright'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 |
| China Everbright vs. KKR Co LP | China Everbright vs. Apollo Global Management | China Everbright vs. TPG Inc | China Everbright vs. Blackstone 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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