Correlation Between Ellington Residential and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Ellington Residential 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 Ellington Residential and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ellington Residential Mortgage and Apollo Global Management, you can compare the effects of market volatilities on Ellington Residential 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 Ellington Residential with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellington Residential and Apollo Global.
Diversification Opportunities for Ellington Residential and Apollo Global
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ellington and Apollo is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ellington Residential Mortgage 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 Ellington Residential 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 Ellington Residential Mortgage 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 Ellington Residential i.e., Ellington Residential and Apollo Global go up and down completely randomly.
Pair Corralation between Ellington Residential and Apollo Global
Given the investment horizon of 90 days Ellington Residential Mortgage is expected to generate 0.34 times more return on investment than Apollo Global. However, Ellington Residential Mortgage is 2.98 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 -0.37 per unit of risk. If you would invest 657.00 in Ellington Residential Mortgage on November 29, 2024 and sell it today you would lose (6.00) from holding Ellington Residential Mortgage or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellington Residential Mortgage vs. Apollo Global Management
Performance |
| Timeline |
| Ellington Residential |
| Apollo Global Management |
Ellington Residential and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellington Residential and Apollo Global
The main advantage of trading using opposite Ellington Residential and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellington Residential 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.| Ellington Residential vs. Dynex Capital | Ellington Residential vs. Orchid Island Capital | Ellington Residential vs. ARMOUR Residential REIT | Ellington Residential vs. Ready Capital Corp |
| Apollo Global vs. Carlyle Group | Apollo Global vs. Blackstone Group | Apollo Global vs. Brookfield Asset Management | Apollo Global vs. Ares Management LP |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |