Correlation Between Apollo Global and Victory Capital
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Victory Capital 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 Victory Capital 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 Victory Capital Holdings, you can compare the effects of market volatilities on Apollo Global and Victory Capital 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 Victory Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Victory Capital.
Diversification Opportunities for Apollo Global and Victory Capital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apollo and Victory is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Victory Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Capital Holdings 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 Victory Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Capital Holdings has no effect on the direction of Apollo Global i.e., Apollo Global and Victory Capital go up and down completely randomly.
Pair Corralation between Apollo Global and Victory Capital
Considering the 90-day investment horizon Apollo Global Management is expected to under-perform the Victory Capital. But the stock apears to be less risky and, when comparing its historical volatility, Apollo Global Management is 1.16 times less risky than Victory Capital. The stock trades about -0.25 of its potential returns per unit of risk. The Victory Capital Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,355 in Victory Capital Holdings on November 28, 2024 and sell it today you would earn a total of 18.50 from holding Victory Capital Holdings or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Victory Capital Holdings
Performance |
| Timeline |
| Apollo Global Management |
| Victory Capital Holdings |
Apollo Global and Victory Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Victory Capital
The main advantage of trading using opposite Apollo Global and Victory Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Victory Capital 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 Victory Capital will offset losses from the drop in Victory Capital'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 |
| Victory Capital vs. Federated Premier Municipal | Victory Capital vs. Blackrock Muniyield | Victory Capital vs. Diamond Hill Investment | Victory Capital vs. NXG NextGen Infrastructure |
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.
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