Correlation Between Western Midstream and Apollo Global

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

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

Diversification Opportunities for Western Midstream and Apollo Global

0.51

Correlation Coefficient

Western Midstream  Apollo Global

Very weak diversification

The 3 months correlation between Western and Apollo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Western Midstream Partners 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 Western Midstream 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 Western Midstream Partners 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 Western Midstream i.e., Western Midstream and Apollo Global go up and down completely randomly.

Pair Corralation between Western Midstream and Apollo Global

Considering the 90-day investment horizon Western Midstream is expected to generate 5.4 times less return on investment than Apollo Global. In addition to that, Western Midstream is 2.71 times more volatile than Apollo Global Management. It trades about 0.01 of its total potential returns per unit of risk. Apollo Global Management is currently generating about 0.13 per unit of volatility. If you would invest  2,599  in Apollo Global Management on May 18, 2025 and sell it today you would earn a total of  101.00  from holding Apollo Global Management or generate 3.89% return on investment over 90 days.

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

Western Midstream Partners  vs.  Apollo Global Management

Western Midstream

Risk-Adjusted Performance

Weakest

Over the last 90 days Western Midstream Partners has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Western Midstream is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Apollo Global Management

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Global Management are ranked lower than 10 (%) 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 Western Midstream and Apollo Global

The main advantage of trading using opposite Western Midstream and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Midstream 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 Western Midstream Partners 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.