Correlation Between Carlyle and Apollo Commercial

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

By analyzing existing cross correlation between Carlyle Group and Apollo Commercial Real, you can compare the effects of market volatilities on Carlyle and Apollo Commercial 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 Carlyle with a short position of Apollo Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Apollo Commercial.

Diversification Opportunities for Carlyle and Apollo Commercial

-0.62

Correlation Coefficient

Carlyle  Apollo Commercial

Excellent diversification

The 3 months correlation between Carlyle and Apollo is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Apollo Commercial Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Commercial Real and Carlyle 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 Carlyle Group are associated (or correlated) with Apollo Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Commercial Real has no effect on the direction of Carlyle i.e., Carlyle and Apollo Commercial go up and down completely randomly.

Pair Corralation between Carlyle and Apollo Commercial

Allowing for the 90-day total investment horizon Carlyle Group is expected to under-perform the Apollo Commercial. In addition to that, Carlyle is 2.01 times more volatile than Apollo Commercial Real. It trades about -0.13 of its total potential returns per unit of risk. Apollo Commercial Real is currently generating about 0.07 per unit of volatility. If you would invest  864.00  in Apollo Commercial Real on January 4, 2025 and sell it today you would earn a total of  60.00  from holding Apollo Commercial Real or generate 6.94% return on investment over 90 days.

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

Carlyle Group  vs.  Apollo Commercial Real

Carlyle Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Carlyle Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Apollo Commercial Real

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Commercial Real are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Apollo Commercial may actually be approaching a critical reversion point that can send shares even higher in May 2025.

Pair Trading with Carlyle and Apollo Commercial

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

The idea behind Carlyle Group and Apollo Commercial Real 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.