Correlation Between Xp and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Xp 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 Xp and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and Apollo Global Management, you can compare the effects of market volatilities on Xp 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 Xp with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and Apollo Global.
Diversification Opportunities for Xp and Apollo Global
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xp and Apollo is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc 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 Xp 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 Xp Inc 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 Xp i.e., Xp and Apollo Global go up and down completely randomly.
Pair Corralation between Xp and Apollo Global
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the Apollo Global. In addition to that, Xp is 1.27 times more volatile than Apollo Global Management. It trades about -0.05 of its total potential returns per unit of risk. Apollo Global Management is currently generating about 0.13 per unit of volatility. If you would invest 9,134 in Apollo Global Management on August 27, 2024 and sell it today you would earn a total of 7,622 from holding Apollo Global Management or generate 83.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Inc vs. Apollo Global Management
Performance |
| Timeline |
| Xp Inc |
| Apollo Global Management |
Xp and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and Apollo Global
The main advantage of trading using opposite Xp and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp 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.| Xp vs. Up Fintech Holding | Xp vs. Bit Digital | Xp vs. Marathon Digital Holdings | Xp vs. MarketAxess Holdings |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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