Correlation Between Apollo Global and Carlyle Secured

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

Diversification Opportunities for Apollo Global and Carlyle Secured

0.17

Correlation Coefficient

Apollo Global  Carlyle Secured

Average diversification

The 3 months correlation between Apollo and Carlyle is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Carlyle Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Secured Lending 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 Carlyle Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Secured Lending has no effect on the direction of Apollo Global i.e., Apollo Global and Carlyle Secured go up and down completely randomly.

Pair Corralation between Apollo Global and Carlyle Secured

Considering the 90-day investment horizon Apollo Global Management is expected to generate 2.11 times more return on investment than Carlyle Secured. However, Apollo Global is 2.11 times more volatile than Carlyle Secured Lending. It trades about 0.33 of its potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.08 per unit of risk. If you would invest  11,101  in Apollo Global Management on September 3, 2024 and sell it today you would earn a total of  6,133  from holding Apollo Global Management or generate 55.25% 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.  Carlyle Secured Lending

Apollo Global Management

Risk-Adjusted Performance

25 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Global Management are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Apollo Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Carlyle Secured Lending

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Carlyle Secured Lending are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental drivers, Carlyle Secured is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Apollo Global and Carlyle Secured

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

The idea behind Apollo Global Management and Carlyle Secured Lending 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.