Correlation Between Goldman Sachs and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and Apollo Global Management, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Apollo Global.
Diversification Opportunities for Goldman Sachs and Apollo Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldman and Apollo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs i.e., Goldman Sachs and Apollo Global go up and down completely randomly.
Pair Corralation between Goldman Sachs and Apollo Global
Allowing for the 90-day total investment horizon Goldman Sachs Group is expected to generate 1.06 times more return on investment than Apollo Global. However, Goldman Sachs is 1.06 times more volatile than Apollo Global Management. It trades about 0.21 of its potential returns per unit of risk. Apollo Global Management is currently generating about 0.22 per unit of risk. If you would invest 51,830 in Goldman Sachs Group on August 23, 2024 and sell it today you would earn a total of 7,781 from holding Goldman Sachs Group or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Group vs. Apollo Global Management
Performance |
| Timeline |
| Goldman Sachs Group |
| Apollo Global Management |
Goldman Sachs and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Apollo Global
The main advantage of trading using opposite Goldman Sachs and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. Evercore Partners | Goldman Sachs vs. SCOR PK | Goldman Sachs vs. Aquagold International | Goldman Sachs vs. Small Cap Core |
| Apollo Global vs. DWS Municipal Income | Apollo Global vs. Blackrock Munivest | Apollo Global vs. SEI Investments | Apollo Global vs. SCOR PK |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |