Correlation Between Apollo Global and ClimateRock
Can any of the company-specific risk be diversified away by investing in both Apollo Global and ClimateRock 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 ClimateRock 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 ClimateRock Class A, you can compare the effects of market volatilities on Apollo Global and ClimateRock 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 ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and ClimateRock.
Diversification Opportunities for Apollo Global and ClimateRock
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and ClimateRock is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class 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 ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of Apollo Global i.e., Apollo Global and ClimateRock go up and down completely randomly.
Pair Corralation between Apollo Global and ClimateRock
Considering the 90-day investment horizon Apollo Global Management is expected to under-perform the ClimateRock. In addition to that, Apollo Global is 2.28 times more volatile than ClimateRock Class A. It trades about -0.32 of its total potential returns per unit of risk. ClimateRock Class A is currently generating about 0.0 per unit of volatility. If you would invest 1,187 in ClimateRock Class A on November 28, 2024 and sell it today you would lose (1.00) from holding ClimateRock Class A or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. ClimateRock Class A
Performance |
| Timeline |
| Apollo Global Management |
| ClimateRock Class |
Apollo Global and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and ClimateRock
The main advantage of trading using opposite Apollo Global and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock'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 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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