Correlation Between Nuveen Floating and Apollo Senior
Can any of the company-specific risk be diversified away by investing in both Nuveen Floating 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 Nuveen Floating and Apollo Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Floating Rate and Apollo Senior Floating, you can compare the effects of market volatilities on Nuveen Floating 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 Nuveen Floating with a short position of Apollo Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Floating and Apollo Senior.
Diversification Opportunities for Nuveen Floating and Apollo Senior
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuveen and Apollo is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Floating Rate 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 Nuveen Floating 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 Nuveen Floating Rate 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 Nuveen Floating i.e., Nuveen Floating and Apollo Senior go up and down completely randomly.
Pair Corralation between Nuveen Floating and Apollo Senior
If you would invest 847.00 in Nuveen Floating Rate on August 28, 2024 and sell it today you would earn a total of 55.00 from holding Nuveen Floating Rate or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Nuveen Floating Rate vs. Apollo Senior Floating
Performance |
| Timeline |
| Nuveen Floating Rate |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nuveen Floating and Apollo Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Floating and Apollo Senior
The main advantage of trading using opposite Nuveen Floating and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Floating 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.| Nuveen Floating vs. Eaton Vance Floating | Nuveen Floating vs. NXG NextGen Infrastructure | Nuveen Floating vs. GAMCO Natural Resources | Nuveen Floating vs. MFS Investment Grade |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |