Correlation Between Apollo Global and Innventure,

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

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

Diversification Opportunities for Apollo Global and Innventure,

0.1

Correlation Coefficient

Apollo Global  Innventure,

Average diversification

The 3 months correlation between Apollo and Innventure, is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Innventure, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innventure, and Apollo Global 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 Global Management are associated (or correlated) with Innventure,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innventure, has no effect on the direction of Apollo Global i.e., Apollo Global and Innventure, go up and down completely randomly.

Pair Corralation between Apollo Global and Innventure,

Assuming the 90 days trading horizon Apollo Global Management is expected to under-perform the Innventure,. But the preferred stock apears to be less risky and, when comparing its historical volatility, Apollo Global Management is 1.73 times less risky than Innventure,. The preferred stock trades about -0.13 of its potential returns per unit of risk. The Innventure, is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,220  in Innventure, on October 10, 2024 and sell it today you would earn a total of  46.00  from holding Innventure, or generate 3.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Apollo Global Management  vs.  Innventure,

Apollo Global Management

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Global Management are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Apollo Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Innventure,

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Innventure, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Innventure, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Global and Innventure,

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

The idea behind Apollo Global Management and Innventure, 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.