Correlation Between Nuveen Floating and Apollo Senior

Can any of the company-specific risk be diversified away by investing in both Nuveen 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 Nuveen 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 Nuveen Floating Rate and Apollo Senior Floating, you can compare the effects of market volatilities on Nuveen 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 Nuveen Floating with a short position of Apollo Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Floating and Apollo Senior.

Diversification Opportunities for Nuveen Floating and Apollo Senior

0.0

Correlation Coefficient

Nuveen Floating  Apollo Senior

Pay attention - limited upside

The 3 months correlation between Nuveen and Apollo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen 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 Nuveen 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 Nuveen 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 Nuveen Floating i.e., Nuveen Floating and Apollo Senior go up and down completely randomly.

Pair Corralation between Nuveen Floating and Apollo Senior

If you would invest (100.00) in Apollo Senior Floating on December 27, 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	100.0%
Values	Daily Returns

Nuveen Floating Rate  vs.  Apollo Senior Floating

Nuveen Floating Rate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen Floating Rate has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Nuveen Floating is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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.

Pair Trading with Nuveen Floating and Apollo Senior

The main advantage of trading using opposite Nuveen Floating and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen 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 Nuveen 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.