Correlation Between Apollo Global and DWS Municipal
Can any of the company-specific risk be diversified away by investing in both Apollo Global and DWS Municipal 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 DWS Municipal 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 DWS Municipal Income, you can compare the effects of market volatilities on Apollo Global and DWS Municipal 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 DWS Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and DWS Municipal.
Diversification Opportunities for Apollo Global and DWS Municipal
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and DWS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and DWS Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS Municipal Income 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 DWS Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS Municipal Income has no effect on the direction of Apollo Global i.e., Apollo Global and DWS Municipal go up and down completely randomly.
Pair Corralation between Apollo Global and DWS Municipal
Considering the 90-day investment horizon Apollo Global Management is expected to generate 3.87 times more return on investment than DWS Municipal. However, Apollo Global is 3.87 times more volatile than DWS Municipal Income. It trades about 0.22 of its potential returns per unit of risk. DWS Municipal Income is currently generating about -0.05 per unit of risk. If you would invest 14,353 in Apollo Global Management on August 23, 2024 and sell it today you would earn a total of 2,149 from holding Apollo Global Management or generate 14.97% 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. DWS Municipal Income
Performance |
| Timeline |
| Apollo Global Management |
| DWS Municipal Income |
Apollo Global and DWS Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and DWS Municipal
The main advantage of trading using opposite Apollo Global and DWS Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, DWS Municipal 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 DWS Municipal will offset losses from the drop in DWS Municipal's long position.| Apollo Global vs. DWS Municipal Income | Apollo Global vs. Blackrock Munivest | Apollo Global vs. SEI Investments | Apollo Global vs. SCOR PK |
| DWS Municipal vs. Pioneer Floating Rate | DWS Municipal vs. The Gabelli Equity | DWS Municipal vs. Pioneer Municipal High | DWS Municipal vs. Nuveen Global High |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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