Correlation Between Apollo Global and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Blue Owl 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 Blue Owl 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 Blue Owl Capital, you can compare the effects of market volatilities on Apollo Global and Blue Owl 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 Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Blue Owl.
Diversification Opportunities for Apollo Global and Blue Owl
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Apollo and Blue is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Blue Owl Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Owl Capital 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 Blue Owl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Owl Capital has no effect on the direction of Apollo Global i.e., Apollo Global and Blue Owl go up and down completely randomly.
Pair Corralation between Apollo Global and Blue Owl
Considering the 90-day investment horizon Apollo Global Management is expected to generate 1.04 times more return on investment than Blue Owl. However, Apollo Global is 1.04 times more volatile than Blue Owl Capital. It trades about 0.22 of its potential returns per unit of risk. Blue Owl Capital is currently generating about 0.1 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Blue Owl Capital
Performance |
| Timeline |
| Apollo Global Management |
| Blue Owl Capital |
Apollo Global and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Blue Owl
The main advantage of trading using opposite Apollo Global and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Blue Owl 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 Blue Owl will offset losses from the drop in Blue Owl's long position.| Apollo Global vs. DWS Municipal Income | Apollo Global vs. Blackrock Munivest | Apollo Global vs. SEI Investments | Apollo Global vs. SCOR PK |
| Blue Owl vs. Apollo Global Management | Blue Owl vs. KKR Co LP | Blue Owl vs. Affiliated Managers Group | Blue Owl vs. Ares Capital |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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