Correlation Between Sachem Capital and Apollo Global

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

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

Diversification Opportunities for Sachem Capital and Apollo Global

0.39

Correlation Coefficient

Sachem Capital  Apollo Global

Weak diversification

The 3 months correlation between Sachem and Apollo is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sachem Capital Corp 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 Sachem Capital 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 Sachem Capital Corp 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 Sachem Capital i.e., Sachem Capital and Apollo Global go up and down completely randomly.

Pair Corralation between Sachem Capital and Apollo Global

Given the investment horizon of 90 days Sachem Capital Corp is expected to generate 8.29 times more return on investment than Apollo Global. However, Sachem Capital is 8.29 times more volatile than Apollo Global Management. It trades about 0.16 of its potential returns per unit of risk. Apollo Global Management is currently generating about 0.15 per unit of risk. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Sachem Capital Corp  vs.  Apollo Global Management

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.

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.

Pair Trading with Sachem Capital and Apollo Global

The main advantage of trading using opposite Sachem Capital and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sachem Capital 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 Sachem Capital Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.