Correlation Between Apollo Global and Philex Mining

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

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

Diversification Opportunities for Apollo Global and Philex Mining

-0.49

Correlation Coefficient

Apollo Global  Philex Mining

Very good diversification

The 3 months correlation between Apollo and Philex is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and Philex Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philex Mining 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 Capital are associated (or correlated) with Philex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philex Mining Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Philex Mining go up and down completely randomly.

Pair Corralation between Apollo Global and Philex Mining

Assuming the 90 days trading horizon Apollo Global Capital is expected to generate 1.25 times more return on investment than Philex Mining. However, Apollo Global is 1.25 times more volatile than Philex Mining Corp. It trades about 0.06 of its potential returns per unit of risk. Philex Mining Corp is currently generating about 0.02 per unit of risk. If you would invest  0.45  in Apollo Global Capital on April 6, 2025 and sell it today you would earn a total of  0.05  from holding Apollo Global Capital or generate 11.11% return on investment over 90 days.

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

Apollo Global Capital  vs.  Philex Mining Corp

Apollo Global Capital

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Global Capital are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Apollo Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Philex Mining Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Philex Mining Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Philex Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Apollo Global and Philex Mining

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

The idea behind Apollo Global Capital and Philex Mining 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.