Correlation Between Blue Owl and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Blue Owl 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 Blue Owl and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Owl Capital and Apollo Global Management, you can compare the effects of market volatilities on Blue Owl 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 Blue Owl with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and Apollo Global.
Diversification Opportunities for Blue Owl and Apollo Global
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blue and Apollo is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital 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 Blue Owl 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 Blue Owl Capital 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 Blue Owl i.e., Blue Owl and Apollo Global go up and down completely randomly.
Pair Corralation between Blue Owl and Apollo Global
Considering the 90-day investment horizon Blue Owl Capital is expected to generate 1.02 times more return on investment than Apollo Global. However, Blue Owl is 1.02 times more volatile than Apollo Global Management. It trades about 0.14 of its potential returns per unit of risk. Apollo Global Management is currently generating about 0.13 per unit of risk. If you would invest 1,313 in Blue Owl Capital on August 27, 2024 and sell it today you would earn a total of 1,142 from holding Blue Owl Capital or generate 86.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Owl Capital vs. Apollo Global Management
Performance |
| Timeline |
| Blue Owl Capital |
| Apollo Global Management |
Blue Owl and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Owl and Apollo Global
The main advantage of trading using opposite Blue Owl and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl 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.| Blue Owl vs. Apollo Global Management | Blue Owl vs. KKR Co LP | Blue Owl vs. Affiliated Managers Group | Blue Owl vs. Ares Capital |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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