Correlation Between Doubleline Yield and Apollo Senior
Can any of the company-specific risk be diversified away by investing in both Doubleline Yield 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 Doubleline Yield and Apollo Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Yield Opportunities and Apollo Senior Floating, you can compare the effects of market volatilities on Doubleline Yield 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 Doubleline Yield with a short position of Apollo Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Yield and Apollo Senior.
Diversification Opportunities for Doubleline Yield and Apollo Senior
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Doubleline and Apollo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Yield Opportunities 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 Doubleline Yield 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 Doubleline Yield Opportunities 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 Doubleline Yield i.e., Doubleline Yield and Apollo Senior go up and down completely randomly.
Pair Corralation between Doubleline Yield and Apollo Senior
Considering the 90-day investment horizon Doubleline Yield is expected to generate 1.25 times less return on investment than Apollo Senior. In addition to that, Doubleline Yield is 1.16 times more volatile than Apollo Senior Floating. It trades about 0.08 of its total potential returns per unit of risk. Apollo Senior Floating is currently generating about 0.12 per unit of volatility. If you would invest 1,118 in Apollo Senior Floating on November 2, 2024 and sell it today you would earn a total of 368.00 from holding Apollo Senior Floating or generate 32.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 73.08% |
| Values | Daily Returns |
Doubleline Yield Opportunities vs. Apollo Senior Floating
Performance |
| Timeline |
| Doubleline Yield Opp |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Doubleline Yield and Apollo Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Yield and Apollo Senior
The main advantage of trading using opposite Doubleline Yield and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Yield 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.| Doubleline Yield vs. Highland Floating Rate | Doubleline Yield vs. Doubleline Opportunistic Credit | Doubleline Yield vs. Alliancebernstein Global High | Doubleline Yield vs. Western Asset Emerging |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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