Correlation Between Carlyle and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Carlyle 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 Carlyle and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Apollo Global Management, you can compare the effects of market volatilities on Carlyle 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 Carlyle with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Apollo Global.
Diversification Opportunities for Carlyle and Apollo Global
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Carlyle and Apollo is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group 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 Carlyle 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 Carlyle Group 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 Carlyle i.e., Carlyle and Apollo Global go up and down completely randomly.
Pair Corralation between Carlyle and Apollo Global
Allowing for the 90-day total investment horizon Carlyle is expected to generate 1.23 times less return on investment than Apollo Global. In addition to that, Carlyle is 1.12 times more volatile than Apollo Global Management. It trades about 0.1 of its total potential returns per unit of risk. Apollo Global Management is currently generating about 0.14 per unit of volatility. If you would invest 9,065 in Apollo Global Management on August 26, 2024 and sell it today you would earn a total of 7,691 from holding Apollo Global Management or generate 84.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Apollo Global Management
Performance |
| Timeline |
| Carlyle Group |
| Apollo Global Management |
Carlyle and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Apollo Global
The main advantage of trading using opposite Carlyle and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle 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.| Carlyle vs. PowerUp Acquisition Corp | Carlyle vs. Aurora Innovation | Carlyle vs. HUMANA INC | Carlyle vs. Aquagold International |
| Apollo Global vs. PowerUp Acquisition Corp | Apollo Global vs. Aurora Innovation | Apollo Global vs. HUMANA INC | Apollo Global vs. Aquagold International |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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