Correlation Between Apollo Global and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Apollo Global and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Trust, you can compare the effects of market volatilities on Apollo Global and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Global and Invesco Municipal.
Diversification Opportunities for Apollo Global and Invesco Municipal
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apollo and Invesco is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Invesco Municipal Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Trust 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Trust has no effect on the direction of Apollo Global i.e., Apollo Global and Invesco Municipal go up and down completely randomly.
Pair Corralation between Apollo Global and Invesco Municipal
Considering the 90-day investment horizon Apollo Global is expected to generate 1.4 times less return on investment than Invesco Municipal. In addition to that, Apollo Global is 3.36 times more volatile than Invesco Municipal Trust. It trades about 0.06 of its total potential returns per unit of risk. Invesco Municipal Trust is currently generating about 0.26 per unit of volatility. If you would invest 971.00 in Invesco Municipal Trust on November 9, 2024 and sell it today you would earn a total of 29.00 from holding Invesco Municipal Trust or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apollo Global Management vs. Invesco Municipal Trust
Performance |
| Timeline |
| Apollo Global Management |
| Invesco Municipal Trust |
Apollo Global and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Global and Invesco Municipal
The main advantage of trading using opposite Apollo Global and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Global position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal's long position.| Apollo Global vs. Carlyle Group | Apollo Global vs. Blackstone Group | Apollo Global vs. Brookfield Asset Management | Apollo Global vs. Ares Management LP |
| Invesco Municipal vs. Invesco Trust For | Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Municipal Opportunity | Invesco Municipal vs. MFS High Income |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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