Correlation Between Uber Technologies and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Uber Technologies 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 Uber Technologies and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Apollo Global Management, you can compare the effects of market volatilities on Uber Technologies 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 Uber Technologies with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Apollo Global.
Diversification Opportunities for Uber Technologies and Apollo Global
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Uber and Apollo is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies 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 Uber Technologies 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 Uber Technologies 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 Uber Technologies i.e., Uber Technologies and Apollo Global go up and down completely randomly.
Pair Corralation between Uber Technologies and Apollo Global
Given the investment horizon of 90 days Uber Technologies is expected to generate 8.36 times less return on investment than Apollo Global. In addition to that, Uber Technologies is 1.32 times more volatile than Apollo Global Management. It trades about 0.01 of its total potential returns per unit of risk. Apollo Global Management is currently generating about 0.16 per unit of volatility. If you would invest 6,119 in Apollo Global Management on September 3, 2024 and sell it today you would earn a total of 3,149 from holding Apollo Global Management or generate 51.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uber Technologies vs. Apollo Global Management
Performance |
| Timeline |
| Uber Technologies |
| Apollo Global Management |
Uber Technologies and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Apollo Global
The main advantage of trading using opposite Uber Technologies and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies 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.| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
| Apollo Global vs. Prospect Capital | Apollo Global vs. State Street | Apollo Global vs. OFS Credit Company, | Apollo Global vs. OFS Credit |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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