Correlation Between Apollo Global and Invesco Advantage
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Invesco Advantage 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 Invesco Advantage 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 Invesco Advantage MIT, you can compare the effects of market volatilities on Apollo Global and Invesco Advantage 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 Invesco Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Invesco Advantage.
Diversification Opportunities for Apollo Global and Invesco Advantage
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apollo and Invesco is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Invesco Advantage MIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Advantage MIT 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 Invesco Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Advantage MIT has no effect on the direction of Apollo Global i.e., Apollo Global and Invesco Advantage go up and down completely randomly.
Pair Corralation between Apollo Global and Invesco Advantage
Considering the 90-day investment horizon Apollo Global Management is expected to generate 4.97 times more return on investment than Invesco Advantage. However, Apollo Global is 4.97 times more volatile than Invesco Advantage MIT. It trades about 0.23 of its potential returns per unit of risk. Invesco Advantage MIT is currently generating about 0.12 per unit of risk. If you would invest 14,313 in Apollo Global Management on August 24, 2024 and sell it today you would earn a total of 2,189 from holding Apollo Global Management or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apollo Global Management vs. Invesco Advantage MIT
Performance |
| Timeline |
| Apollo Global Management |
| Invesco Advantage MIT |
Apollo Global and Invesco Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Invesco Advantage
The main advantage of trading using opposite Apollo Global and Invesco Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Invesco Advantage 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 Invesco Advantage will offset losses from the drop in Invesco Advantage's long position.| Apollo Global vs. Invesco Advantage MIT | Apollo Global vs. Invesco Municipal Trust | Apollo Global vs. Invesco California Value | Apollo Global vs. Victory Capital Holdings |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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