Correlation Between Apollo Global and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Oxford Square 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 Oxford Square 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 Oxford Square Capital, you can compare the effects of market volatilities on Apollo Global and Oxford Square 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 Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Oxford Square.
Diversification Opportunities for Apollo Global and Oxford Square
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Oxford is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Oxford Square Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Square 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 Oxford Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Square Capital has no effect on the direction of Apollo Global i.e., Apollo Global and Oxford Square go up and down completely randomly.
Pair Corralation between Apollo Global and Oxford Square
Considering the 90-day investment horizon Apollo Global is expected to generate 3.81 times less return on investment than Oxford Square. In addition to that, Apollo Global is 1.81 times more volatile than Oxford Square Capital. It trades about 0.06 of its total potential returns per unit of risk. Oxford Square Capital is currently generating about 0.38 per unit of volatility. If you would invest 253.00 in Oxford Square Capital on November 9, 2024 and sell it today you would earn a total of 21.00 from holding Oxford Square Capital or generate 8.3% 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. Oxford Square Capital
Performance |
| Timeline |
| Apollo Global Management |
| Oxford Square Capital |
Apollo Global and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Oxford Square
The main advantage of trading using opposite Apollo Global and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Oxford Square 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 Oxford Square will offset losses from the drop in Oxford Square'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 |
| Oxford Square vs. Eagle Point Credit | Oxford Square vs. Cornerstone Strategic Return | Oxford Square vs. Cornerstone Strategic Value | Oxford Square vs. Guggenheim Strategic Opportunities |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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