Correlation Between Victory Capital and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Victory Capital 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 Victory Capital and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Capital Holdings and Apollo Global Management, you can compare the effects of market volatilities on Victory Capital 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 Victory Capital with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Capital and Apollo Global.
Diversification Opportunities for Victory Capital and Apollo Global
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Victory and Apollo is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Victory Capital Holdings 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 Victory Capital 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 Victory Capital Holdings 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 Victory Capital i.e., Victory Capital and Apollo Global go up and down completely randomly.
Pair Corralation between Victory Capital and Apollo Global
Given the investment horizon of 90 days Victory Capital is expected to generate 1.17 times less return on investment than Apollo Global. In addition to that, Victory Capital is 1.05 times more volatile than Apollo Global Management. It trades about 0.25 of its total potential returns per unit of risk. Apollo Global Management is currently generating about 0.31 per unit of volatility. If you would invest 14,443 in Apollo Global Management on August 28, 2024 and sell it today you would earn a total of 3,027 from holding Apollo Global Management or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Capital Holdings vs. Apollo Global Management
Performance |
| Timeline |
| Victory Capital Holdings |
| Apollo Global Management |
Victory Capital and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Capital and Apollo Global
The main advantage of trading using opposite Victory Capital and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Capital 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.| Victory Capital vs. Federated Premier Municipal | Victory Capital vs. Blackrock Muniyield | Victory Capital vs. Diamond Hill Investment | Victory Capital vs. NXG NextGen Infrastructure |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |