Correlation Between Franklin Resources and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Franklin Resources and Apollo Global 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 Franklin Resources and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Resources and Apollo Global Management, you can compare the effects of market volatilities on Franklin Resources and Apollo Global 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 Franklin Resources with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Resources and Apollo Global.
Diversification Opportunities for Franklin Resources and Apollo Global
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Apollo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Resources and Apollo Global Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Management and Franklin Resources 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 Franklin Resources are associated (or correlated) with Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Management has no effect on the direction of Franklin Resources i.e., Franklin Resources and Apollo Global go up and down completely randomly.
Pair Corralation between Franklin Resources and Apollo Global
Considering the 90-day investment horizon Franklin Resources is expected to under-perform the Apollo Global. But the stock apears to be less risky and, when comparing its historical volatility, Franklin Resources is 1.12 times less risky than Apollo Global. The stock trades about -0.03 of its potential returns per unit of risk. The Apollo Global Management is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,806 in Apollo Global Management on November 1, 2024 and sell it today you would earn a total of 10,170 from holding Apollo Global Management or generate 149.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Franklin Resources vs. Apollo Global Management
Performance |
| Timeline |
| Franklin Resources |
| Apollo Global Management |
Franklin Resources and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Resources and Apollo Global
The main advantage of trading using opposite Franklin Resources and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Resources position performs unexpectedly, Apollo Global 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 Apollo Global will offset losses from the drop in Apollo Global's long position.| Franklin Resources vs. BlackRock | Franklin Resources vs. Main Street Capital | Franklin Resources vs. Blackstone Group | Franklin Resources vs. Ares Capital |
| Apollo Global vs. Blue Owl Capital | Apollo Global vs. TPG Inc | Apollo Global vs. Patria Investments | Apollo Global vs. Cion Investment Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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