Correlation Between Apollo Tactical and Nuveen SP
Can any of the company-specific risk be diversified away by investing in both Apollo Tactical and Nuveen SP 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 Nuveen SP 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 Nuveen SP 500, you can compare the effects of market volatilities on Apollo Tactical and Nuveen SP 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 Nuveen SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Tactical and Nuveen SP.
Diversification Opportunities for Apollo Tactical and Nuveen SP
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apollo and Nuveen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Tactical Income and Nuveen SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen SP 500 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 Nuveen SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen SP 500 has no effect on the direction of Apollo Tactical i.e., Apollo Tactical and Nuveen SP go up and down completely randomly.
Pair Corralation between Apollo Tactical and Nuveen SP
Considering the 90-day investment horizon Apollo Tactical Income is expected to generate 1.26 times more return on investment than Nuveen SP. However, Apollo Tactical is 1.26 times more volatile than Nuveen SP 500. It trades about 0.14 of its potential returns per unit of risk. Nuveen SP 500 is currently generating about 0.09 per unit of risk. If you would invest 1,064 in Apollo Tactical Income on September 1, 2024 and sell it today you would earn a total of 418.00 from holding Apollo Tactical Income or generate 39.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.07% |
| Values | Daily Returns |
Apollo Tactical Income vs. Nuveen SP 500
Performance |
| Timeline |
| Apollo Tactical Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuveen SP 500 |
Apollo Tactical and Nuveen SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Tactical and Nuveen SP
The main advantage of trading using opposite Apollo Tactical and Nuveen SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Tactical position performs unexpectedly, Nuveen SP 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 SP will offset losses from the drop in Nuveen SP's 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 |
| Nuveen SP vs. Nuveen SP 500 | Nuveen SP vs. Voya Global Equity | Nuveen SP vs. Nuveen NASDAQ 100 | Nuveen SP vs. Nuveen Real Asset |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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