Correlation Between Apollo Global and Swift Foods

Can any of the company-specific risk be diversified away by investing in both Apollo Global and Swift Foods 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 Swift Foods 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 Swift Foods, you can compare the effects of market volatilities on Apollo Global and Swift Foods 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 Swift Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Swift Foods.

Diversification Opportunities for Apollo Global and Swift Foods

-0.06

Correlation Coefficient

Apollo Global  Swift Foods

Good diversification

The 3 months correlation between Apollo and Swift is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Capital and Swift Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Foods 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 Swift Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Foods has no effect on the direction of Apollo Global i.e., Apollo Global and Swift Foods go up and down completely randomly.

Pair Corralation between Apollo Global and Swift Foods

Assuming the 90 days trading horizon Apollo Global is expected to generate 1.11 times less return on investment than Swift Foods. But when comparing it to its historical volatility, Apollo Global Capital is 2.13 times less risky than Swift Foods. It trades about 0.09 of its potential returns per unit of risk. Swift Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  4.90  in Swift Foods on April 22, 2025 and sell it today you would earn a total of  0.10  from holding Swift Foods or generate 2.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	63.93%
Values	Daily Returns

Apollo Global Capital  vs.  Swift Foods

Apollo Global Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Global Capital are ranked lower than 7 (%) 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.

Swift Foods

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swift Foods are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Swift Foods exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apollo Global and Swift Foods

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

The idea behind Apollo Global Capital and Swift Foods 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.