Correlation Between Apollo Global and Sachem Capital

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

Diversification Opportunities for Apollo Global and Sachem Capital

0.66

Correlation Coefficient

Apollo Global  Sachem Capital

Poor diversification

The 3 months correlation between Apollo and Sachem is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Sachem Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sachem Capital Corp 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 Sachem Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sachem Capital Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Sachem Capital go up and down completely randomly.

Pair Corralation between Apollo Global and Sachem Capital

Given the investment horizon of 90 days Apollo Global is expected to generate 8.84 times less return on investment than Sachem Capital. But when comparing it to its historical volatility, Apollo Global Management is 8.29 times less risky than Sachem Capital. It trades about 0.15 of its potential returns per unit of risk. Sachem Capital Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  81.00  in Sachem Capital Corp on May 17, 2025 and sell it today you would earn a total of  32.00  from holding Sachem Capital Corp or generate 39.51% return on investment over 90 days.

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

Apollo Global Management  vs.  Sachem Capital Corp

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 11 (%) 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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Sachem Capital Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sachem Capital Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental indicators, Sachem Capital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Global and Sachem Capital

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

The idea behind Apollo Global Management and Sachem Capital Corp 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 Stocks Directory module to find actively traded stocks across global markets.