Correlation Between Apollo Global and Central Plains
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Central Plains 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 Central Plains 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 Central Plains Bancshares,, you can compare the effects of market volatilities on Apollo Global and Central Plains 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 Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Central Plains.
Diversification Opportunities for Apollo Global and Central Plains
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Apollo and Central is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Central Plains Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Bancs 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 Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Bancs has no effect on the direction of Apollo Global i.e., Apollo Global and Central Plains go up and down completely randomly.
Pair Corralation between Apollo Global and Central Plains
Considering the 90-day investment horizon Apollo Global Management is expected to generate 1.6 times more return on investment than Central Plains. However, Apollo Global is 1.6 times more volatile than Central Plains Bancshares,. It trades about 0.15 of its potential returns per unit of risk. Central Plains Bancshares, is currently generating about 0.2 per unit of risk. If you would invest 11,574 in Apollo Global Management on September 1, 2024 and sell it today you would earn a total of 5,929 from holding Apollo Global Management or generate 51.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Central Plains Bancshares,
Performance |
| Timeline |
| Apollo Global Management |
| Central Plains Bancs |
Apollo Global and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Central Plains
The main advantage of trading using opposite Apollo Global and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Apollo Global vs. Visa Class A | Apollo Global vs. Diamond Hill Investment | Apollo Global vs. Distoken Acquisition | Apollo Global vs. Associated Capital Group |
| Central Plains vs. KVH Industries | Central Plains vs. Royalty Management Holding | Central Plains vs. Mind Technology | Central Plains vs. Semtech |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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