Correlation Between SM Investments and Apollo Global
Can any of the company-specific risk be diversified away by investing in both SM Investments 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 SM Investments and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SM Investments Corp and Apollo Global Capital, you can compare the effects of market volatilities on SM Investments 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 SM Investments with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SM Investments and Apollo Global.
Diversification Opportunities for SM Investments and Apollo Global
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SM Investments and Apollo is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SM Investments Corp and Apollo Global Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Capital and SM Investments 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 SM Investments Corp 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 Capital has no effect on the direction of SM Investments i.e., SM Investments and Apollo Global go up and down completely randomly.
Pair Corralation between SM Investments and Apollo Global
Assuming the 90 days trading horizon SM Investments Corp is expected to generate 0.32 times more return on investment than Apollo Global. However, SM Investments Corp is 3.08 times less risky than Apollo Global. It trades about 0.0 of its potential returns per unit of risk. Apollo Global Capital is currently generating about -0.09 per unit of risk. If you would invest 91,522 in SM Investments Corp on August 31, 2024 and sell it today you would lose (4,022) from holding SM Investments Corp or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SM Investments Corp vs. Apollo Global Capital
Performance |
| Timeline |
| SM Investments Corp |
| Apollo Global Capital |
SM Investments and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SM Investments and Apollo Global
The main advantage of trading using opposite SM Investments and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SM Investments 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.| SM Investments vs. Ayala Corp | SM Investments vs. GT Capital Holdings | SM Investments vs. Allhome Corp | SM Investments vs. Jollibee Foods Corp |
| Apollo Global vs. Philex Mining Corp | Apollo Global vs. Atlas Consolidated Mining | Apollo Global vs. Lepanto Consolidated Mining | Apollo Global vs. Manila Mining Corp |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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