Correlation Between Apollo Global and 3i Group
Can any of the company-specific risk be diversified away by investing in both Apollo Global and 3i 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 3i 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 3i Group PLC, you can compare the effects of market volatilities on Apollo Global and 3i 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 3i Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and 3i Group.
Diversification Opportunities for Apollo Global and 3i Group
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and TGOPY is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and 3i Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3i Group PLC 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 3i Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3i Group PLC has no effect on the direction of Apollo Global i.e., Apollo Global and 3i Group go up and down completely randomly.
Pair Corralation between Apollo Global and 3i Group
Considering the 90-day investment horizon Apollo Global Management is expected to generate 1.39 times more return on investment than 3i Group. However, Apollo Global is 1.39 times more volatile than 3i Group PLC. It trades about 0.15 of its potential returns per unit of risk. 3i Group PLC is currently generating about 0.13 per unit of risk. If you would invest 11,574 in Apollo Global Management on August 31, 2024 and sell it today you would earn a total of 5,929 from holding Apollo Global Management or generate 51.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. 3i Group PLC
Performance |
| Timeline |
| Apollo Global Management |
| 3i Group PLC |
Apollo Global and 3i Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and 3i Group
The main advantage of trading using opposite Apollo Global and 3i Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, 3i 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 3i Group will offset losses from the drop in 3i 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 |
| 3i Group vs. Blackhawk Growth Corp | 3i Group vs. Guardian Capital Group | 3i Group vs. Flow Capital Corp | 3i Group vs. Princeton 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |