Correlation Between Apollo Tactical and Cbre Clarion

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

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

Diversification Opportunities for Apollo Tactical and Cbre Clarion

-0.81

Correlation Coefficient

Apollo Tactical  Cbre Clarion

Pay attention - limited upside

The 3 months correlation between Apollo and Cbre is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Tactical Income and Cbre Clarion Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cbre Clarion Global and Apollo Tactical 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 Tactical Income are associated (or correlated) with Cbre Clarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cbre Clarion Global has no effect on the direction of Apollo Tactical i.e., Apollo Tactical and Cbre Clarion go up and down completely randomly.

Pair Corralation between Apollo Tactical and Cbre Clarion

If you would invest  1,482  in Apollo Tactical Income on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Apollo Tactical Income or generate 0.0% return on investment over 90 days.

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

Apollo Tactical Income  vs.  Cbre Clarion Global

Apollo Tactical Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Tactical Income has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable forward indicators, Apollo Tactical is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cbre Clarion Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cbre Clarion Global has generated negative risk-adjusted returns adding no value to fund investors. Even with unsteady performance in the last few months, the Fund's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the fund retail investors.

Pair Trading with Apollo Tactical and Cbre Clarion

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

The idea behind Apollo Tactical Income and Cbre Clarion Global 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.