Correlation Between Apollo Global and Lion Group
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Lion Group 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 Lion Group 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 Lion Group Holding, you can compare the effects of market volatilities on Apollo Global and Lion Group 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 Lion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Lion Group.
Diversification Opportunities for Apollo Global and Lion Group
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apollo and Lion is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Lion Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Group Holding 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 Lion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Group Holding has no effect on the direction of Apollo Global i.e., Apollo Global and Lion Group go up and down completely randomly.
Pair Corralation between Apollo Global and Lion Group
Considering the 90-day investment horizon Apollo Global Management is expected to generate 0.56 times more return on investment than Lion Group. However, Apollo Global Management is 1.79 times less risky than Lion Group. It trades about 0.36 of its potential returns per unit of risk. Lion Group Holding is currently generating about -0.02 per unit of risk. If you would invest 13,904 in Apollo Global Management on September 4, 2024 and sell it today you would earn a total of 3,330 from holding Apollo Global Management or generate 23.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Lion Group Holding
Performance |
| Timeline |
| Apollo Global Management |
| Lion Group Holding |
Apollo Global and Lion Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Lion Group
The main advantage of trading using opposite Apollo Global and Lion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Lion Group 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 Lion Group will offset losses from the drop in Lion Group'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 |
| Lion Group vs. Magic Empire Global | Lion Group vs. Netcapital | Lion Group vs. Mercurity Fintech Holding | Lion Group vs. Applied Blockchain |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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