Correlation Between Invesco California and Apollo Senior
Can any of the company-specific risk be diversified away by investing in both Invesco California 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 Invesco California and Apollo Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco California Value and Apollo Senior Floating, you can compare the effects of market volatilities on Invesco California 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 Invesco California with a short position of Apollo Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco California and Apollo Senior.
Diversification Opportunities for Invesco California and Apollo Senior
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and Apollo is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Invesco California Value 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 Invesco California 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 Invesco California Value 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 Invesco California i.e., Invesco California and Apollo Senior go up and down completely randomly.
Pair Corralation between Invesco California and Apollo Senior
Considering the 90-day investment horizon Invesco California is expected to generate 2.21 times less return on investment than Apollo Senior. In addition to that, Invesco California is 1.03 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 0.17 per unit of volatility. If you would invest 1,083 in Apollo Senior Floating on August 31, 2024 and sell it today you would earn a total of 403.00 from holding Apollo Senior Floating or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.13% |
| Values | Daily Returns |
Invesco California Value vs. Apollo Senior Floating
Performance |
| Timeline |
| Invesco California Value |
| Apollo Senior Floating |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Invesco California and Apollo Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco California and Apollo Senior
The main advantage of trading using opposite Invesco California and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco California 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.| Invesco California vs. Pimco California Municipal | Invesco California vs. Invesco Pennsylvania Value | Invesco California vs. Nuveen California Dividend | Invesco California vs. Invesco Advantage MIT |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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