Correlation Between Apollo Global and Federated Premier
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Federated Premier 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 Federated Premier 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 Federated Premier Municipal, you can compare the effects of market volatilities on Apollo Global and Federated Premier 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 Federated Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Federated Premier.
Diversification Opportunities for Apollo Global and Federated Premier
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apollo and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Federated Premier Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Premier 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 Federated Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Premier has no effect on the direction of Apollo Global i.e., Apollo Global and Federated Premier go up and down completely randomly.
Pair Corralation between Apollo Global and Federated Premier
Considering the 90-day investment horizon Apollo Global Management is expected to under-perform the Federated Premier. In addition to that, Apollo Global is 3.25 times more volatile than Federated Premier Municipal. It trades about -0.12 of its total potential returns per unit of risk. Federated Premier Municipal is currently generating about 0.02 per unit of volatility. If you would invest 1,126 in Federated Premier Municipal on December 2, 2024 and sell it today you would earn a total of 8.00 from holding Federated Premier Municipal or generate 0.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Apollo Global Management vs. Federated Premier Municipal
Performance |
Timeline |
Apollo Global Management |
Federated Premier |
Apollo Global and Federated Premier Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apollo Global and Federated Premier
The main advantage of trading using opposite Apollo Global and Federated Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Federated Premier 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 Federated Premier will offset losses from the drop in Federated Premier's long position.Apollo Global vs. Carlyle Group | Apollo Global vs. Blackstone Group | Apollo Global vs. Brookfield Asset Management | Apollo Global vs. Ares Management LP |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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