Correlation Between Alliancebernstein and Apollo Tactical
Can any of the company-specific risk be diversified away by investing in both Alliancebernstein and Apollo Tactical 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 Alliancebernstein and Apollo Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliancebernstein National Municipal and Apollo Tactical Income, you can compare the effects of market volatilities on Alliancebernstein and Apollo Tactical 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 Alliancebernstein with a short position of Apollo Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliancebernstein and Apollo Tactical.
Diversification Opportunities for Alliancebernstein and Apollo Tactical
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alliancebernstein and Apollo is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Alliancebernstein National Mun and Apollo Tactical Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Tactical Income and Alliancebernstein 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 Alliancebernstein National Municipal are associated (or correlated) with Apollo Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Tactical Income has no effect on the direction of Alliancebernstein i.e., Alliancebernstein and Apollo Tactical go up and down completely randomly.
Pair Corralation between Alliancebernstein and Apollo Tactical
Considering the 90-day investment horizon Alliancebernstein is expected to generate 3.3 times less return on investment than Apollo Tactical. But when comparing it to its historical volatility, Alliancebernstein National Municipal is 1.23 times less risky than Apollo Tactical. It trades about 0.04 of its potential returns per unit of risk. Apollo Tactical Income is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,082 in Apollo Tactical Income on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Apollo Tactical Income or generate 36.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.78% |
| Values | Daily Returns |
Alliancebernstein National Mun vs. Apollo Tactical Income
Performance |
| Timeline |
| Alliancebernstein |
| Apollo Tactical Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alliancebernstein and Apollo Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliancebernstein and Apollo Tactical
The main advantage of trading using opposite Alliancebernstein and Apollo Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliancebernstein position performs unexpectedly, Apollo Tactical 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 Tactical will offset losses from the drop in Apollo Tactical's long position.| Alliancebernstein vs. Eaton Vance Short | Alliancebernstein vs. Allianzgi Diversified Income | Alliancebernstein vs. Ares Dynamic Credit | Alliancebernstein vs. DWS Municipal Income |
| Apollo Tactical vs. Abrdn Emerging Markets | Apollo Tactical vs. Aberdeen Global Dynamic | Apollo Tactical vs. Bny Mellon Municipalome | Apollo Tactical vs. Nuveen Arizona Quality |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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