Correlation Between First State and Apollo Global
Can any of the company-specific risk be diversified away by investing in both First State 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 First State and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First State Financial and Apollo Global Management, you can compare the effects of market volatilities on First State 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 First State with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Apollo Global.
Diversification Opportunities for First State and Apollo Global
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Apollo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Apollo Global Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Management and First State 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 First State Financial 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 Management has no effect on the direction of First State i.e., First State and Apollo Global go up and down completely randomly.
Pair Corralation between First State and Apollo Global
Given the investment horizon of 90 days First State Financial is expected to generate 64.18 times more return on investment than Apollo Global. However, First State is 64.18 times more volatile than Apollo Global Management. It trades about 0.03 of its potential returns per unit of risk. Apollo Global Management is currently generating about 0.15 per unit of risk. If you would invest 3.69 in First State Financial on November 19, 2025 and sell it today you would lose (1.74) from holding First State Financial or give up 47.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First State Financial vs. Apollo Global Management
Performance |
| Timeline |
| First State Financial |
| Apollo Global Management |
Risk-Adjusted Performance
Fair
Weak | Strong |
First State and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and Apollo Global
The main advantage of trading using opposite First State and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State 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.| First State vs. First Republic Bank | First State vs. BioCube | First State vs. Trend Exploration I | First State vs. Eastern Goldfields |
| Apollo Global vs. Julius Br Gruppe | Apollo Global vs. Ares Capital | Apollo Global vs. Investment AB Latour | Apollo Global vs. Amundi SA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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