Correlation Between Apollo Global and Charles Schwab

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

Diversification Opportunities for Apollo Global and Charles Schwab

0.18
  Correlation Coefficient

Average diversification

The 3 months correlation between Apollo and Charles is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Charles Schwab Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charles Schwab 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 Management are associated (or correlated) with Charles Schwab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charles Schwab Corp has no effect on the direction of Apollo Global i.e., Apollo Global and Charles Schwab go up and down completely randomly.

Pair Corralation between Apollo Global and Charles Schwab

Considering the 90-day investment horizon Apollo Global Management is expected to generate 1.6 times more return on investment than Charles Schwab. However, Apollo Global is 1.6 times more volatile than Charles Schwab Corp. It trades about -0.01 of its potential returns per unit of risk. Charles Schwab Corp is currently generating about -0.07 per unit of risk. If you would invest  13,388  in Apollo Global Management on August 26, 2025 and sell it today you would lose (386.00) from holding Apollo Global Management or give up 2.88% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Apollo Global Management  vs.  Charles Schwab Corp

 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 very healthy basic indicators, Apollo Global is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
Charles Schwab Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Charles Schwab Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical indicators, Charles Schwab is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Apollo Global and Charles Schwab Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apollo Global and Charles Schwab

The main advantage of trading using opposite Apollo Global and Charles Schwab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Charles Schwab 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 Charles Schwab will offset losses from the drop in Charles Schwab's long position.
The idea behind Apollo Global Management and Charles Schwab 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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