Correlation Between BlackRock Floating and Apollo Senior

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

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

Diversification Opportunities for BlackRock Floating and Apollo Senior

0.77

Correlation Coefficient

BlackRock Floating  Apollo Senior

Poor diversification

The 3 months correlation between BlackRock and Apollo is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Floating Rate 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 BlackRock Floating 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 BlackRock Floating Rate 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 BlackRock Floating i.e., BlackRock Floating and Apollo Senior go up and down completely randomly.

Pair Corralation between BlackRock Floating and Apollo Senior

If you would invest  1,239  in BlackRock Floating Rate on September 4, 2024 and sell it today you would earn a total of  68.00  from holding BlackRock Floating Rate or generate 5.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.59%
Values	Daily Returns

BlackRock Floating Rate  vs.  Apollo Senior Floating

BlackRock Floating Rate

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Floating Rate are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, BlackRock Floating is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Apollo Senior Floating

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with BlackRock Floating and Apollo Senior

The main advantage of trading using opposite BlackRock Floating and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Floating 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.

The idea behind BlackRock Floating Rate and Apollo Senior Floating 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.