Correlation Between US Global and Apollo Global
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Apollo Global Management, you can compare the effects of market volatilities on US Global 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 US Global with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Apollo Global.
Diversification Opportunities for US Global and Apollo Global
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between GROW and Apollo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors 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 US Global 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 US Global Investors 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 US Global i.e., US Global and Apollo Global go up and down completely randomly.
Pair Corralation between US Global and Apollo Global
Given the investment horizon of 90 days US Global Investors is expected to generate 0.52 times more return on investment than Apollo Global. However, US Global Investors is 1.91 times less risky than Apollo Global. It trades about 0.05 of its potential returns per unit of risk. Apollo Global Management is currently generating about -0.07 per unit of risk. If you would invest 242.00 in US Global Investors on November 18, 2024 and sell it today you would earn a total of 2.00 from holding US Global Investors or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Apollo Global Management
Performance |
| Timeline |
| US Global Investors |
| Apollo Global Management |
US Global and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Apollo Global
The main advantage of trading using opposite US Global and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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