Correlation Between Apollo Global and Equus Total
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Equus Total 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 Equus Total 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 Equus Total Return, you can compare the effects of market volatilities on Apollo Global and Equus Total 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 Equus Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Equus Total.
Diversification Opportunities for Apollo Global and Equus Total
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apollo and Equus is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Equus Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equus Total Return 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 Equus Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equus Total Return has no effect on the direction of Apollo Global i.e., Apollo Global and Equus Total go up and down completely randomly.
Pair Corralation between Apollo Global and Equus Total
Considering the 90-day investment horizon Apollo Global is expected to generate 15.58 times less return on investment than Equus Total. But when comparing it to its historical volatility, Apollo Global Management is 2.76 times less risky than Equus Total. It trades about 0.05 of its potential returns per unit of risk. Equus Total Return is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 105.00 in Equus Total Return on November 8, 2024 and sell it today you would earn a total of 31.00 from holding Equus Total Return or generate 29.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Equus Total Return
Performance |
| Timeline |
| Apollo Global Management |
| Equus Total Return |
Apollo Global and Equus Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Equus Total
The main advantage of trading using opposite Apollo Global and Equus Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Equus Total 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 Equus Total will offset losses from the drop in Equus Total'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 |
| Equus Total vs. Rand Capital Corp | Equus Total vs. Gabelli Convertible And | Equus Total vs. Mfs Intermediate High | Equus Total vs. RENN Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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