Correlation Between Apollo Senior and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Apollo Senior and Eaton Vance 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 Eaton Vance 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 Eaton Vance Senior, you can compare the effects of market volatilities on Apollo Senior and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Senior and Eaton Vance.
Diversification Opportunities for Apollo Senior and Eaton Vance
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Eaton is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Senior Floating and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Senior has no effect on the direction of Apollo Senior i.e., Apollo Senior and Eaton Vance go up and down completely randomly.
Pair Corralation between Apollo Senior and Eaton Vance
Considering the 90-day investment horizon Apollo Senior Floating is expected to generate 0.57 times more return on investment than Eaton Vance. However, Apollo Senior Floating is 1.76 times less risky than Eaton Vance. It trades about 0.13 of its potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.07 per unit of risk. If you would invest 1,036 in Apollo Senior Floating on August 24, 2024 and sell it today you would earn a total of 450.00 from holding Apollo Senior Floating or generate 43.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.26% |
| Values | Daily Returns |
Apollo Senior Floating vs. Eaton Vance Senior
Performance |
| Timeline |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eaton Vance Senior |
Apollo Senior and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Senior and Eaton Vance
The main advantage of trading using opposite Apollo Senior and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Senior position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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