Correlation Between Caterpillar and Apollo Senior
Can any of the company-specific risk be diversified away by investing in both Caterpillar and Apollo Senior 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 Caterpillar and Apollo Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caterpillar and Apollo Senior Floating, you can compare the effects of market volatilities on Caterpillar and Apollo Senior 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 Caterpillar with a short position of Apollo Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and Apollo Senior.
Diversification Opportunities for Caterpillar and Apollo Senior
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Caterpillar and Apollo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and Apollo Senior Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Senior Floating and Caterpillar 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 Caterpillar are associated (or correlated) with Apollo Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Senior Floating has no effect on the direction of Caterpillar i.e., Caterpillar and Apollo Senior go up and down completely randomly.
Pair Corralation between Caterpillar and Apollo Senior
If you would invest 36,246 in Caterpillar on November 4, 2024 and sell it today you would earn a total of 898.00 from holding Caterpillar or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Caterpillar vs. Apollo Senior Floating
Performance |
| Timeline |
| Caterpillar |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caterpillar and Apollo Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and Apollo Senior
The main advantage of trading using opposite Caterpillar and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar position performs unexpectedly, Apollo Senior 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 Apollo Senior will offset losses from the drop in Apollo Senior's long position.| Caterpillar vs. AGCO Corporation | Caterpillar vs. Nikola Corp | Caterpillar vs. PACCAR Inc | Caterpillar vs. Deere Company |
| Apollo Senior vs. Blackstone Gso Strategic | Apollo Senior vs. First Trust Senior | Apollo Senior vs. BlackRock Floating Rate | Apollo Senior vs. Eaton Vance Senior |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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