Correlation Between Goldman Sachs and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Apollo Investment 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 Goldman Sachs and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Goldman Sachs and Apollo Investment Corp, you can compare the effects of market volatilities on Goldman Sachs and Apollo Investment 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 Goldman Sachs with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Apollo Investment.
Diversification Opportunities for Goldman Sachs and Apollo Investment
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goldman and Apollo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Goldman Sachs and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and Goldman Sachs 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 The Goldman Sachs are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Apollo Investment go up and down completely randomly.
Pair Corralation between Goldman Sachs and Apollo Investment
Assuming the 90 days trading horizon The Goldman Sachs is expected to generate 1.27 times more return on investment than Apollo Investment. However, Goldman Sachs is 1.27 times more volatile than Apollo Investment Corp. It trades about 0.32 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.21 per unit of risk. If you would invest 44,623 in The Goldman Sachs on April 21, 2025 and sell it today you would earn a total of 16,157 from holding The Goldman Sachs or generate 36.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
The Goldman Sachs vs. Apollo Investment Corp
Performance |
Timeline |
Goldman Sachs |
Apollo Investment Corp |
Goldman Sachs and Apollo Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goldman Sachs and Apollo Investment
The main advantage of trading using opposite Goldman Sachs and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Apollo Investment 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 Investment will offset losses from the drop in Apollo Investment's long position.Goldman Sachs vs. TRADEGATE | Goldman Sachs vs. Alfa Financial Software | Goldman Sachs vs. Globe Trade Centre | Goldman Sachs vs. Parkson Retail Group |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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