Correlation Between Profunds Ultrashort and Apollo Senior
Can any of the company-specific risk be diversified away by investing in both Profunds Ultrashort 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 Profunds Ultrashort and Apollo Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profunds Ultrashort Nasdaq 100 and Apollo Senior Floating, you can compare the effects of market volatilities on Profunds Ultrashort 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 Profunds Ultrashort with a short position of Apollo Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profunds Ultrashort and Apollo Senior.
Diversification Opportunities for Profunds Ultrashort and Apollo Senior
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Profunds and Apollo is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Profunds Ultrashort Nasdaq 100 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 Profunds Ultrashort 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 Profunds Ultrashort Nasdaq 100 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 Profunds Ultrashort i.e., Profunds Ultrashort and Apollo Senior go up and down completely randomly.
Pair Corralation between Profunds Ultrashort and Apollo Senior
Assuming the 90 days horizon Profunds Ultrashort Nasdaq 100 is expected to under-perform the Apollo Senior. In addition to that, Profunds Ultrashort is 3.05 times more volatile than Apollo Senior Floating. It trades about -0.06 of its total potential returns per unit of risk. Apollo Senior Floating is currently generating about 0.16 per unit of volatility. If you would invest 1,420 in Apollo Senior Floating on August 28, 2024 and sell it today you would earn a total of 66.00 from holding Apollo Senior Floating or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Profunds Ultrashort Nasdaq 100 vs. Apollo Senior Floating
Performance |
| Timeline |
| Profunds Ultrashort |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Profunds Ultrashort and Apollo Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profunds Ultrashort and Apollo Senior
The main advantage of trading using opposite Profunds Ultrashort and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profunds Ultrashort 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.| Profunds Ultrashort vs. Ishares Municipal Bond | Profunds Ultrashort vs. Artisan High Income | Profunds Ultrashort vs. Transamerica Intermediate Muni | Profunds Ultrashort vs. Morningstar Defensive Bond |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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