Correlation Between Apollo Senior and Nuveen Mortgage
Can any of the company-specific risk be diversified away by investing in both Apollo Senior and Nuveen Mortgage 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 Nuveen Mortgage 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 Nuveen Mortgage Opportunity, you can compare the effects of market volatilities on Apollo Senior and Nuveen Mortgage 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 Nuveen Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Senior and Nuveen Mortgage.
Diversification Opportunities for Apollo Senior and Nuveen Mortgage
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Nuveen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Senior Floating and Nuveen Mortgage Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Mortgage Oppo 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 Nuveen Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Mortgage Oppo has no effect on the direction of Apollo Senior i.e., Apollo Senior and Nuveen Mortgage go up and down completely randomly.
Pair Corralation between Apollo Senior and Nuveen Mortgage
If you would invest 1,799 in Nuveen Mortgage Opportunity on November 3, 2024 and sell it today you would earn a total of 67.00 from holding Nuveen Mortgage Opportunity or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Apollo Senior Floating vs. Nuveen Mortgage Opportunity
Performance |
| Timeline |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuveen Mortgage Oppo |
Apollo Senior and Nuveen Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Senior and Nuveen Mortgage
The main advantage of trading using opposite Apollo Senior and Nuveen Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Senior position performs unexpectedly, Nuveen Mortgage 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 Nuveen Mortgage will offset losses from the drop in Nuveen Mortgage'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 |
| Nuveen Mortgage vs. Western Asset High | Nuveen Mortgage vs. Pioneer Municipal High | Nuveen Mortgage vs. The Gabelli Equity | Nuveen Mortgage vs. Eaton Vance National |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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