Correlation Between Apollo Global and Patria Investments
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Patria Investments 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 Patria Investments 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 Patria Investments, you can compare the effects of market volatilities on Apollo Global and Patria Investments 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 Patria Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Patria Investments.
Diversification Opportunities for Apollo Global and Patria Investments
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apollo and Patria is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Patria Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Investments 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 Patria Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Investments has no effect on the direction of Apollo Global i.e., Apollo Global and Patria Investments go up and down completely randomly.
Pair Corralation between Apollo Global and Patria Investments
Considering the 90-day investment horizon Apollo Global Management is expected to under-perform the Patria Investments. In addition to that, Apollo Global is 1.08 times more volatile than Patria Investments. It trades about -0.03 of its total potential returns per unit of risk. Patria Investments is currently generating about 0.08 per unit of volatility. If you would invest 1,135 in Patria Investments on October 20, 2024 and sell it today you would earn a total of 30.00 from holding Patria Investments or generate 2.64% 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. Patria Investments
Performance |
| Timeline |
| Apollo Global Management |
| Patria Investments |
Apollo Global and Patria Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Patria Investments
The main advantage of trading using opposite Apollo Global and Patria Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Patria Investments 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 Patria Investments will offset losses from the drop in Patria Investments' long position.| Apollo Global vs. Carlyle Group | Apollo Global vs. Blackstone Group | Apollo Global vs. Brookfield Asset Management | Apollo Global vs. Ares Management LP |
| Patria Investments vs. Invesco Advantage MIT | Patria Investments vs. Invesco Municipal Trust | Patria Investments vs. Invesco California Value | Patria Investments vs. Ares Management LP |
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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