Correlation Between Apollo Global and Carlyle
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Carlyle 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 Carlyle 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 Carlyle Group, you can compare the effects of market volatilities on Apollo Global and Carlyle 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 Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Carlyle.
Diversification Opportunities for Apollo Global and Carlyle
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Carlyle is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group 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 Carlyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Group has no effect on the direction of Apollo Global i.e., Apollo Global and Carlyle go up and down completely randomly.
Pair Corralation between Apollo Global and Carlyle
Considering the 90-day investment horizon Apollo Global Management is expected to generate 1.07 times more return on investment than Carlyle. However, Apollo Global is 1.07 times more volatile than Carlyle Group. It trades about 0.15 of its potential returns per unit of risk. Carlyle Group is currently generating about 0.11 per unit of risk. If you would invest 14,060 in Apollo Global Management on November 1, 2024 and sell it today you would earn a total of 3,116 from holding Apollo Global Management or generate 22.16% 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. Carlyle Group
Performance |
| Timeline |
| Apollo Global Management |
| Carlyle Group |
Apollo Global and Carlyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Carlyle
The main advantage of trading using opposite Apollo Global and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Carlyle 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 Carlyle will offset losses from the drop in Carlyle's long position.| Apollo Global vs. Blue Owl Capital | Apollo Global vs. TPG Inc | Apollo Global vs. Patria Investments | Apollo Global vs. Cion Investment Corp |
| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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