Correlation Between Apollo Commercial and CaliberCos
Can any of the company-specific risk be diversified away by investing in both Apollo Commercial and CaliberCos 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 Commercial and CaliberCos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Commercial Real and CaliberCos Class A, you can compare the effects of market volatilities on Apollo Commercial and CaliberCos 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 Commercial with a short position of CaliberCos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Commercial and CaliberCos.
Diversification Opportunities for Apollo Commercial and CaliberCos
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apollo and CaliberCos is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Commercial Real and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A and Apollo 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 Apollo Commercial Real are associated (or correlated) with CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of Apollo Commercial i.e., Apollo Commercial and CaliberCos go up and down completely randomly.
Pair Corralation between Apollo Commercial and CaliberCos
Considering the 90-day investment horizon Apollo Commercial is expected to generate 11.24 times less return on investment than CaliberCos. But when comparing it to its historical volatility, Apollo Commercial Real is 29.81 times less risky than CaliberCos. It trades about 0.33 of its potential returns per unit of risk. CaliberCos Class A is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 274.00 in CaliberCos Class A on May 31, 2025 and sell it today you would earn a total of 73.00 from holding CaliberCos Class A or generate 26.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Commercial Real vs. CaliberCos Class A
Performance |
| Timeline |
| Apollo Commercial Real |
| CaliberCos Class A |
Apollo Commercial and CaliberCos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Commercial and CaliberCos
The main advantage of trading using opposite Apollo Commercial and CaliberCos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Commercial position performs unexpectedly, CaliberCos 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 CaliberCos will offset losses from the drop in CaliberCos' long position.| Apollo Commercial vs. Ares Commercial Real | Apollo Commercial vs. AGNC Investment Corp | Apollo Commercial vs. Ares Capital | Apollo Commercial vs. Blackstone Mortgage Trust |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |