Correlation Between NXG NextGen and Apollo Tactical
Can any of the company-specific risk be diversified away by investing in both NXG NextGen and Apollo Tactical 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 NXG NextGen and Apollo Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NXG NextGen Infrastructure and Apollo Tactical Income, you can compare the effects of market volatilities on NXG NextGen and Apollo Tactical 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 NXG NextGen with a short position of Apollo Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NXG NextGen and Apollo Tactical.
Diversification Opportunities for NXG NextGen and Apollo Tactical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NXG and Apollo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding NXG NextGen Infrastructure and Apollo Tactical Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Tactical Income and NXG NextGen 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 NXG NextGen Infrastructure are associated (or correlated) with Apollo Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Tactical Income has no effect on the direction of NXG NextGen i.e., NXG NextGen and Apollo Tactical go up and down completely randomly.
Pair Corralation between NXG NextGen and Apollo Tactical
Considering the 90-day investment horizon NXG NextGen Infrastructure is expected to generate 1.86 times more return on investment than Apollo Tactical. However, NXG NextGen is 1.86 times more volatile than Apollo Tactical Income. It trades about 0.1 of its potential returns per unit of risk. Apollo Tactical Income is currently generating about 0.13 per unit of risk. If you would invest 3,025 in NXG NextGen Infrastructure on August 28, 2024 and sell it today you would earn a total of 1,972 from holding NXG NextGen Infrastructure or generate 65.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 74.58% |
| Values | Daily Returns |
NXG NextGen Infrastructure vs. Apollo Tactical Income
Performance |
| Timeline |
| NXG NextGen Infrastr |
| Apollo Tactical Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NXG NextGen and Apollo Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NXG NextGen and Apollo Tactical
The main advantage of trading using opposite NXG NextGen and Apollo Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NXG NextGen position performs unexpectedly, Apollo Tactical 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 Tactical will offset losses from the drop in Apollo Tactical's long position.| NXG NextGen vs. PowerUp Acquisition Corp | NXG NextGen vs. Aurora Innovation | NXG NextGen vs. HUMANA INC | NXG NextGen vs. Aquagold International |
| Apollo Tactical vs. Abrdn Emerging Markets | Apollo Tactical vs. Aberdeen Global Dynamic | Apollo Tactical vs. Bny Mellon Municipalome | Apollo Tactical vs. Nuveen Arizona Quality |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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