Correlation Between Apollo Global and Cboe Global

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Can any of the company-specific risk be diversified away by investing in both Apollo Global and Cboe 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 Apollo Global and Cboe Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Global Management and Cboe Global Markets, you can compare the effects of market volatilities on Apollo Global and Cboe 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 Apollo Global with a short position of Cboe Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Cboe Global.

Diversification Opportunities for Apollo Global and Cboe Global

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Apollo and Cboe is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Cboe Global Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe Global Markets 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 Management are associated (or correlated) with Cboe Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe Global Markets has no effect on the direction of Apollo Global i.e., Apollo Global and Cboe Global go up and down completely randomly.

Pair Corralation between Apollo Global and Cboe Global

Considering the 90-day investment horizon Apollo Global Management is expected to under-perform the Cboe Global. In addition to that, Apollo Global is 1.62 times more volatile than Cboe Global Markets. It trades about -0.14 of its total potential returns per unit of risk. Cboe Global Markets is currently generating about -0.04 per unit of volatility. If you would invest  24,576  in Cboe Global Markets on July 25, 2025 and sell it today you would lose (851.00) from holding Cboe Global Markets or give up 3.46% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Apollo Global Management  vs.  Cboe Global Markets

 Performance 
       Timeline  
Apollo Global Management 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Apollo Global Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Cboe Global Markets 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cboe Global Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Cboe Global is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Apollo Global and Cboe Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apollo Global and Cboe Global

The main advantage of trading using opposite Apollo Global and Cboe Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Cboe 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 Cboe Global will offset losses from the drop in Cboe Global's long position.
The idea behind Apollo Global Management and Cboe Global Markets 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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