Correlation Between Apollo Senior and Pioneer Floating

Can any of the company-specific risk be diversified away by investing in both Apollo Senior and Pioneer Floating 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 Apollo Senior and Pioneer Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apollo Senior Floating and Pioneer Floating Rate, you can compare the effects of market volatilities on Apollo Senior and Pioneer Floating 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 Apollo Senior with a short position of Pioneer Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Senior and Pioneer Floating.

Diversification Opportunities for Apollo Senior and Pioneer Floating

0.0

Correlation Coefficient

Apollo Senior  Pioneer Floating

Pay attention - limited upside

The 3 months correlation between Apollo and Pioneer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Senior Floating and Pioneer Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Floating Rate and Apollo Senior 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 Apollo Senior Floating are associated (or correlated) with Pioneer Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Floating Rate has no effect on the direction of Apollo Senior i.e., Apollo Senior and Pioneer Floating go up and down completely randomly.

Pair Corralation between Apollo Senior and Pioneer Floating

If you would invest (100.00) in Apollo Senior Floating on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Apollo Senior Floating or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Apollo Senior Floating  vs.  Pioneer Floating Rate

Apollo Senior Floating

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollo Senior Floating has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical and fundamental indicators, Apollo Senior is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pioneer Floating Rate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pioneer Floating Rate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Pioneer Floating is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Apollo Senior and Pioneer Floating

The main advantage of trading using opposite Apollo Senior and Pioneer Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Senior position performs unexpectedly, Pioneer Floating 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 Pioneer Floating will offset losses from the drop in Pioneer Floating's long position.

The idea behind Apollo Senior Floating and Pioneer Floating Rate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.