Correlation Between Apollo Senior and Gabelli Equity
Can any of the company-specific risk be diversified away by investing in both Apollo Senior and Gabelli Equity 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 Gabelli Equity 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 The Gabelli Equity, you can compare the effects of market volatilities on Apollo Senior and Gabelli Equity 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 Gabelli Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Senior and Gabelli Equity.
Diversification Opportunities for Apollo Senior and Gabelli Equity
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apollo and Gabelli is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Senior Floating and The Gabelli Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity 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 Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity has no effect on the direction of Apollo Senior i.e., Apollo Senior and Gabelli Equity go up and down completely randomly.
Pair Corralation between Apollo Senior and Gabelli Equity
Considering the 90-day investment horizon Apollo Senior Floating is expected to generate 1.1 times more return on investment than Gabelli Equity. However, Apollo Senior is 1.1 times more volatile than The Gabelli Equity. It trades about 0.17 of its potential returns per unit of risk. The Gabelli Equity is currently generating about 0.05 per unit of risk. If you would invest 1,083 in Apollo Senior Floating on August 31, 2024 and sell it today you would earn a total of 403.00 from holding Apollo Senior Floating or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.13% |
| Values | Daily Returns |
Apollo Senior Floating vs. The Gabelli Equity
Performance |
| Timeline |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gabelli Equity |
Apollo Senior and Gabelli Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Senior and Gabelli Equity
The main advantage of trading using opposite Apollo Senior and Gabelli Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Senior position performs unexpectedly, Gabelli Equity 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 Gabelli Equity will offset losses from the drop in Gabelli Equity'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 |
| Gabelli Equity vs. Virtus AllianzGI Convertible | Gabelli Equity vs. The Gabelli Equity | Gabelli Equity vs. Oxford Lane Capital | Gabelli Equity vs. The Gabelli Utility |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |