Correlation Between BlackRock MIT and Apollo Global
Can any of the company-specific risk be diversified away by investing in both BlackRock MIT 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 BlackRock MIT and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock MIT II and Apollo Global Management, you can compare the effects of market volatilities on BlackRock MIT 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 BlackRock MIT with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock MIT and Apollo Global.
Diversification Opportunities for BlackRock MIT and Apollo Global
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BlackRock and Apollo is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock MIT II 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 BlackRock MIT 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 BlackRock MIT II 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 BlackRock MIT i.e., BlackRock MIT and Apollo Global go up and down completely randomly.
Pair Corralation between BlackRock MIT and Apollo Global
Considering the 90-day investment horizon BlackRock MIT is expected to generate 6.03 times less return on investment than Apollo Global. But when comparing it to its historical volatility, BlackRock MIT II is 4.49 times less risky than Apollo Global. It trades about 0.12 of its potential returns per unit of risk. Apollo Global Management is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 11,547 in Apollo Global Management on September 3, 2024 and sell it today you would earn a total of 5,956 from holding Apollo Global Management or generate 51.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock MIT II vs. Apollo Global Management
Performance |
| Timeline |
| BlackRock MIT II |
| Apollo Global Management |
BlackRock MIT and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock MIT and Apollo Global
The main advantage of trading using opposite BlackRock MIT and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock MIT 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.| BlackRock MIT vs. Blackrock Munivest | BlackRock MIT vs. Invesco Municipal Trust | BlackRock MIT vs. BlackRock Municipal Income | BlackRock MIT vs. Eaton Vance Mbf |
| Apollo Global vs. Federated Premier Municipal | Apollo Global vs. Blackrock Muniyield | Apollo Global vs. Federated Investors B | Apollo Global vs. SEI Investments |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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