Correlation Between Macquariefirst and Apollo Senior

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

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

Diversification Opportunities for Macquariefirst and Apollo Senior

0.0

Correlation Coefficient

Macquariefirst  Apollo Senior

Pay attention - limited upside

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

Pair Corralation between Macquariefirst and Apollo Senior

If you would invest (100.00) in Apollo Senior Floating on December 30, 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

Macquariefirst Tr Global  vs.  Apollo Senior Floating

Macquariefirst Tr Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Macquariefirst Tr Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, Macquariefirst is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 Macquariefirst and Apollo Senior

The main advantage of trading using opposite Macquariefirst and Apollo Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquariefirst 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 Macquariefirst Tr Global 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.