Correlation Between Apollo Tactical and GCM Grosvenor

Can any of the company-specific risk be diversified away by investing in both Apollo Tactical and GCM Grosvenor 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 Apollo Tactical and GCM Grosvenor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apollo Tactical Income and GCM Grosvenor, you can compare the effects of market volatilities on Apollo Tactical and GCM Grosvenor 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 Apollo Tactical with a short position of GCM Grosvenor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Tactical and GCM Grosvenor.

Diversification Opportunities for Apollo Tactical and GCM Grosvenor

0.0

Correlation Coefficient

Apollo Tactical  GCM Grosvenor

Pay attention - limited upside

The 3 months correlation between Apollo and GCM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Tactical Income and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and Apollo Tactical 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 Apollo Tactical Income are associated (or correlated) with GCM Grosvenor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCM Grosvenor has no effect on the direction of Apollo Tactical i.e., Apollo Tactical and GCM Grosvenor go up and down completely randomly.

Pair Corralation between Apollo Tactical and GCM Grosvenor

If you would invest  127.00  in GCM Grosvenor on December 24, 2024 and sell it today you would earn a total of  69.00  from holding GCM Grosvenor or generate 54.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Apollo Tactical Income  vs.  GCM Grosvenor

Apollo Tactical Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollo Tactical Income has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable forward indicators, Apollo Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

GCM Grosvenor

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GCM Grosvenor are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, GCM Grosvenor showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Tactical and GCM Grosvenor

The main advantage of trading using opposite Apollo Tactical and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Tactical position performs unexpectedly, GCM Grosvenor 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 GCM Grosvenor will offset losses from the drop in GCM Grosvenor's long position.

The idea behind Apollo Tactical Income and GCM Grosvenor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.