Correlation Between Rizal Commercial and Apollo Global

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

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

Diversification Opportunities for Rizal Commercial and Apollo Global

-0.13

Correlation Coefficient

Rizal Commercial  Apollo Global

Good diversification

The 3 months correlation between Rizal and Apollo is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Rizal Commercial Banking and Apollo Global Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Capital and Rizal Commercial 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 Rizal Commercial Banking 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 Capital has no effect on the direction of Rizal Commercial i.e., Rizal Commercial and Apollo Global go up and down completely randomly.

Pair Corralation between Rizal Commercial and Apollo Global

Assuming the 90 days trading horizon Rizal Commercial Banking is expected to under-perform the Apollo Global. But the stock apears to be less risky and, when comparing its historical volatility, Rizal Commercial Banking is 2.92 times less risky than Apollo Global. The stock trades about -0.02 of its potential returns per unit of risk. The Apollo Global Capital is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  0.48  in Apollo Global Capital on April 22, 2025 and sell it today you would earn a total of  0.10  from holding Apollo Global Capital or generate 20.83% return on investment over 90 days.

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

Rizal Commercial Banking  vs.  Apollo Global Capital

Rizal Commercial Banking

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rizal Commercial Banking has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Rizal Commercial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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.

Pair Trading with Rizal Commercial and Apollo Global

The main advantage of trading using opposite Rizal Commercial and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rizal Commercial 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 Rizal Commercial Banking and Apollo Global Capital 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.