Correlation Between Pioneer Municipal and Apollo Senior
Can any of the company-specific risk be diversified away by investing in both Pioneer Municipal 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 Pioneer Municipal and Apollo Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer Municipal High and Apollo Senior Floating, you can compare the effects of market volatilities on Pioneer Municipal 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 Pioneer Municipal with a short position of Apollo Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Municipal and Apollo Senior.
Diversification Opportunities for Pioneer Municipal and Apollo Senior
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pioneer and Apollo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Municipal High 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 Pioneer Municipal 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 Pioneer Municipal High 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 Pioneer Municipal i.e., Pioneer Municipal and Apollo Senior go up and down completely randomly.
Pair Corralation between Pioneer Municipal and Apollo Senior
Considering the 90-day investment horizon Pioneer Municipal is expected to generate 3.48 times less return on investment than Apollo Senior. In addition to that, Pioneer Municipal is 1.24 times more volatile than Apollo Senior Floating. It trades about 0.03 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 | Insignificant |
| Accuracy | 73.08% |
| Values | Daily Returns |
Pioneer Municipal High vs. Apollo Senior Floating
Performance |
| Timeline |
| Pioneer Municipal High |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pioneer Municipal and Apollo Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer Municipal and Apollo Senior
The main advantage of trading using opposite Pioneer Municipal and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Municipal 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.| Pioneer Municipal vs. New America High | Pioneer Municipal vs. DWS Municipal Income | Pioneer Municipal vs. RiverNorth Specialty Finance | Pioneer Municipal vs. Putnam Managed Municipal |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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