Correlation Between Apollo Tactical and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Apollo Tactical and Dow Jones 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 Tactical and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Tactical Income and Dow Jones Industrial, you can compare the effects of market volatilities on Apollo Tactical and Dow Jones 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 Tactical with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Tactical and Dow Jones.
Diversification Opportunities for Apollo Tactical and Dow Jones
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apollo and Dow is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Tactical Income and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Apollo Tactical 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 Tactical Income are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Apollo Tactical i.e., Apollo Tactical and Dow Jones go up and down completely randomly.
Pair Corralation between Apollo Tactical and Dow Jones
If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 276,911 from holding Dow Jones Industrial or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
Apollo Tactical Income vs. Dow Jones Industrial
Performance |
| Timeline |
Apollo Tactical and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Apollo Tactical Income
Pair trading matchups for Apollo Tactical
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Apollo Tactical and Dow Jones
The main advantage of trading using opposite Apollo Tactical and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Tactical position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Apollo Tactical vs. Abrdn Emerging Markets | Apollo Tactical vs. Aberdeen Global Dynamic | Apollo Tactical vs. Bny Mellon Municipalome | Apollo Tactical vs. Nuveen Arizona Quality |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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