Correlation Between Carlyle Secured and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Carlyle Secured 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 Secured 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 Secured Lending and Apollo Global Management, you can compare the effects of market volatilities on Carlyle Secured 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 Secured with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle Secured and Apollo Global.
Diversification Opportunities for Carlyle Secured and Apollo Global
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Carlyle and Apollo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Secured Lending 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 Secured 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 Secured Lending 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 Secured i.e., Carlyle Secured and Apollo Global go up and down completely randomly.
Pair Corralation between Carlyle Secured and Apollo Global
Given the investment horizon of 90 days Carlyle Secured is expected to generate 2.51 times less return on investment than Apollo Global. But when comparing it to its historical volatility, Carlyle Secured Lending is 1.68 times less risky than Apollo Global. It trades about 0.07 of its potential returns per unit of risk. Apollo Global Management is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,213 in Apollo Global Management on August 24, 2024 and sell it today you would earn a total of 10,289 from holding Apollo Global Management or generate 165.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Secured Lending vs. Apollo Global Management
Performance |
| Timeline |
| Carlyle Secured Lending |
| Apollo Global Management |
Carlyle Secured and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle Secured and Apollo Global
The main advantage of trading using opposite Carlyle Secured and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle Secured 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 Secured vs. Sixth Street Specialty | Carlyle Secured vs. Golub Capital BDC | Carlyle Secured vs. Fidus Investment Corp | Carlyle Secured vs. New Mountain Finance |
| Apollo Global vs. Invesco Advantage MIT | Apollo Global vs. Invesco Municipal Trust | Apollo Global vs. Invesco California Value | Apollo Global vs. Victory Capital Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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