Correlation Between Apollo Global and Blackrock Muniyield

Can any of the company-specific risk be diversified away by investing in both Apollo Global and Blackrock Muniyield 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 Blackrock Muniyield 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 Blackrock Muniyield, you can compare the effects of market volatilities on Apollo Global and Blackrock Muniyield 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 Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Blackrock Muniyield.

Diversification Opportunities for Apollo Global and Blackrock Muniyield

-0.34

Correlation Coefficient

Apollo Global  Blackrock Muniyield

Very good diversification

The 3 months correlation between Apollo and Blackrock is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Blackrock Muniyield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield 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 Blackrock Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of Apollo Global i.e., Apollo Global and Blackrock Muniyield go up and down completely randomly.

Pair Corralation between Apollo Global and Blackrock Muniyield

Considering the 90-day investment horizon Apollo Global Management is expected to under-perform the Blackrock Muniyield. In addition to that, Apollo Global is 4.28 times more volatile than Blackrock Muniyield. It trades about -0.11 of its total potential returns per unit of risk. Blackrock Muniyield is currently generating about 0.1 per unit of volatility. If you would invest  1,028  in Blackrock Muniyield on December 26, 2024 and sell it today you would earn a total of  32.00  from holding Blackrock Muniyield or generate 3.11% return on investment over 90 days.

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

Apollo Global Management  vs.  Blackrock Muniyield

Apollo Global Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollo Global Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Blackrock Muniyield

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Muniyield are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound basic indicators, Blackrock Muniyield is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Apollo Global and Blackrock Muniyield

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

The idea behind Apollo Global Management and Blackrock Muniyield 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.