Correlation Between CaliberCos and Apollo Global

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

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

Diversification Opportunities for CaliberCos and Apollo Global

-0.68

Correlation Coefficient

CaliberCos  Apollo Global

Excellent diversification

The 3 months correlation between CaliberCos and Apollo is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CaliberCos Class A 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 CaliberCos 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 CaliberCos Class A 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 CaliberCos i.e., CaliberCos and Apollo Global go up and down completely randomly.

Pair Corralation between CaliberCos and Apollo Global

Considering the 90-day investment horizon CaliberCos Class A is expected to generate 2.95 times more return on investment than Apollo Global. However, CaliberCos is 2.95 times more volatile than Apollo Global Management. It trades about 0.07 of its potential returns per unit of risk. Apollo Global Management is currently generating about 0.18 per unit of risk. If you would invest  61.00  in CaliberCos Class A on October 7, 2024 and sell it today you would earn a total of  9.00  from holding CaliberCos Class A or generate 14.75% return on investment over 90 days.

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

CaliberCos Class A  vs.  Apollo Global Management

CaliberCos Class A

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CaliberCos Class A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CaliberCos exhibited solid returns over the last few months and may actually be approaching a breakup point.

Apollo Global Management

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Global Management are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Apollo Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CaliberCos and Apollo Global

The main advantage of trading using opposite CaliberCos and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CaliberCos 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.

The idea behind CaliberCos Class A and Apollo Global Management 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.