Correlation Between Apollo Global and Radcom

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

Diversification Opportunities for Apollo Global and Radcom

0.02

Correlation Coefficient

Apollo Global  Radcom

Significant diversification

The 3 months correlation between Apollo and Radcom is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of Apollo Global i.e., Apollo Global and Radcom go up and down completely randomly.

Pair Corralation between Apollo Global and Radcom

Given the investment horizon of 90 days Apollo Global Management is expected to generate 0.16 times more return on investment than Radcom. However, Apollo Global Management is 6.29 times less risky than Radcom. It trades about 0.15 of its potential returns per unit of risk. Radcom is currently generating about 0.0 per unit of risk. If you would invest  2,584  in Apollo Global Management on May 20, 2025 and sell it today you would earn a total of  116.00  from holding Apollo Global Management or generate 4.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Apollo Global Management  vs.  Radcom

Apollo Global Management

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Global Management are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Apollo Global is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Radcom

Risk-Adjusted Performance

Weakest

Over the last 90 days Radcom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Radcom is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Apollo Global and Radcom

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

The idea behind Apollo Global Management and Radcom 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.