Correlation Between Apollo Global and ATN Holdings

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

By analyzing existing cross correlation between Apollo Global Capital and ATN Holdings, you can compare the effects of market volatilities on Apollo Global and ATN Holdings 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 ATN Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and ATN Holdings.

Diversification Opportunities for Apollo Global and ATN Holdings

-0.9

Correlation Coefficient

Apollo Global  ATN Holdings

Pay attention - limited upside

The 3 months correlation between Apollo and ATN is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and ATN Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN Holdings 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 Capital are associated (or correlated) with ATN Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATN Holdings has no effect on the direction of Apollo Global i.e., Apollo Global and ATN Holdings go up and down completely randomly.

Pair Corralation between Apollo Global and ATN Holdings

Assuming the 90 days trading horizon Apollo Global Capital is expected to under-perform the ATN Holdings. In addition to that, Apollo Global is 1.9 times more volatile than ATN Holdings. It trades about -0.48 of its total potential returns per unit of risk. ATN Holdings is currently generating about 0.16 per unit of volatility. If you would invest  47.00  in ATN Holdings on September 17, 2024 and sell it today you would earn a total of  2.00  from holding ATN Holdings or generate 4.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Apollo Global Capital  vs.  ATN Holdings

Apollo Global Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Global Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ATN Holdings

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ATN Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, ATN Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Global and ATN Holdings

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

The idea behind Apollo Global Capital and ATN Holdings 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.