Correlation Between RCL Foods and Apollo Global

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

By analyzing existing cross correlation between RCL Foods Limited and Apollo Global Management, you can compare the effects of market volatilities on RCL Foods and Apollo Global 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 RCL Foods with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCL Foods and Apollo Global.

Diversification Opportunities for RCL Foods and Apollo Global

0.65

Correlation Coefficient

RCL Foods  Apollo Global

Poor diversification

The 3 months correlation between RCL and Apollo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding RCL Foods Limited and Apollo Global Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Management and RCL Foods 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 RCL Foods Limited are associated (or correlated) with Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Management has no effect on the direction of RCL Foods i.e., RCL Foods and Apollo Global go up and down completely randomly.

Pair Corralation between RCL Foods and Apollo Global

Assuming the 90 days horizon RCL Foods Limited is expected to generate 6.16 times more return on investment than Apollo Global. However, RCL Foods is 6.16 times more volatile than Apollo Global Management. It trades about 0.12 of its potential returns per unit of risk. Apollo Global Management is currently generating about 0.09 per unit of risk. If you would invest  46.00  in RCL Foods Limited on April 29, 2025 and sell it today you would earn a total of  11.00  from holding RCL Foods Limited or generate 23.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

RCL Foods Limited  vs.  Apollo Global Management

RCL Foods Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RCL Foods Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, RCL Foods reported solid returns over the last few months and may actually be approaching a breakup point.

Apollo Global Management

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Global Management are ranked lower than 6 (%) 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 latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with RCL Foods and Apollo Global

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

The idea behind RCL Foods Limited and Apollo Global Management 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.