Correlation Between Apollo Global and Carbon Streaming
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Carbon Streaming 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 Carbon Streaming 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 Carbon Streaming Corp, you can compare the effects of market volatilities on Apollo Global and Carbon Streaming 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 Carbon Streaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Carbon Streaming.
Diversification Opportunities for Apollo Global and Carbon Streaming
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and Carbon is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Carbon Streaming Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carbon Streaming Corp 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 Carbon Streaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carbon Streaming Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Carbon Streaming go up and down completely randomly.
Pair Corralation between Apollo Global and Carbon Streaming
Considering the 90-day investment horizon Apollo Global Management is expected to generate 0.52 times more return on investment than Carbon Streaming. However, Apollo Global Management is 1.92 times less risky than Carbon Streaming. It trades about 0.26 of its potential returns per unit of risk. Carbon Streaming Corp is currently generating about -0.07 per unit of risk. If you would invest 14,269 in Apollo Global Management on August 26, 2024 and sell it today you would earn a total of 2,487 from holding Apollo Global Management or generate 17.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Carbon Streaming Corp
Performance |
| Timeline |
| Apollo Global Management |
| Carbon Streaming Corp |
Apollo Global and Carbon Streaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Carbon Streaming
The main advantage of trading using opposite Apollo Global and Carbon Streaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Carbon Streaming 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 Carbon Streaming will offset losses from the drop in Carbon Streaming's long position.| Apollo Global vs. PowerUp Acquisition Corp | Apollo Global vs. Aurora Innovation | Apollo Global vs. HUMANA INC | Apollo Global vs. Aquagold International |
| Carbon Streaming vs. Blackstone Group | Carbon Streaming vs. BlackRock | Carbon Streaming vs. Apollo Global Management | Carbon Streaming vs. Investor AB ser |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |