Correlation Between Apollo Global and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Apollo Global 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 Global 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 Global Management and Eaton Vance Senior, you can compare the effects of market volatilities on Apollo Global 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 Global with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Eaton Vance.
Diversification Opportunities for Apollo Global and Eaton Vance
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apollo and Eaton is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management 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 Global 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 Global Management 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 Global i.e., Apollo Global and Eaton Vance go up and down completely randomly.
Pair Corralation between Apollo Global and Eaton Vance
Considering the 90-day investment horizon Apollo Global Management is expected to generate 2.9 times more return on investment than Eaton Vance. However, Apollo Global is 2.9 times more volatile than Eaton Vance Senior. It trades about 0.11 of its potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.11 per unit of risk. If you would invest 6,303 in Apollo Global Management on September 3, 2024 and sell it today you would earn a total of 11,200 from holding Apollo Global Management or generate 177.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Eaton Vance Senior
Performance |
| Timeline |
| Apollo Global Management |
| Eaton Vance Senior |
Apollo Global and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Eaton Vance
The main advantage of trading using opposite Apollo Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global 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 Global vs. Federated Premier Municipal | Apollo Global vs. Blackrock Muniyield | Apollo Global vs. Federated Investors B | Apollo Global vs. SEI Investments |
| Eaton Vance vs. Blackrock Floating Rate | Eaton Vance vs. Pioneer Floating Rate | Eaton Vance vs. Eaton Vance Senior | Eaton Vance vs. Blackrock Debt Strategies |
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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