Correlation Between Apollo Senior and BlackRock Global
Can any of the company-specific risk be diversified away by investing in both Apollo Senior and BlackRock 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 Senior and BlackRock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Senior Floating and BlackRock Global Opportunities, you can compare the effects of market volatilities on Apollo Senior and BlackRock 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 Senior with a short position of BlackRock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Senior and BlackRock Global.
Diversification Opportunities for Apollo Senior and BlackRock Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apollo and BlackRock is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Senior Floating and BlackRock Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Global Opp and Apollo Senior 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 Senior Floating are associated (or correlated) with BlackRock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Global Opp has no effect on the direction of Apollo Senior i.e., Apollo Senior and BlackRock Global go up and down completely randomly.
Pair Corralation between Apollo Senior and BlackRock Global
If you would invest 1,114 in BlackRock Global Opportunities on August 28, 2024 and sell it today you would earn a total of 11.00 from holding BlackRock Global Opportunities or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 2.33% |
| Values | Daily Returns |
Apollo Senior Floating vs. BlackRock Global Opportunities
Performance |
| Timeline |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BlackRock Global Opp |
Apollo Senior and BlackRock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Senior and BlackRock Global
The main advantage of trading using opposite Apollo Senior and BlackRock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Senior position performs unexpectedly, BlackRock 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 BlackRock Global will offset losses from the drop in BlackRock Global's long position.| Apollo Senior vs. Blackstone Gso Strategic | Apollo Senior vs. First Trust Senior | Apollo Senior vs. BlackRock Floating Rate | Apollo Senior vs. Eaton Vance Senior |
| BlackRock Global vs. Blackrock Enhanced Equity | BlackRock Global vs. Eaton Vance Tax | BlackRock Global vs. BlackRock Energy and | BlackRock Global vs. Eaton Vance Risk |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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