Correlation Between Gabelli Dividend and Apollo Tactical

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

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

Diversification Opportunities for Gabelli Dividend and Apollo Tactical

0.83

Correlation Coefficient

Gabelli Dividend  Apollo Tactical

Very poor diversification

The 3 months correlation between Gabelli and Apollo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Dividend Income and Apollo Tactical Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Tactical Income and Gabelli Dividend 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 Gabelli Dividend Income are associated (or correlated) with Apollo Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Tactical Income has no effect on the direction of Gabelli Dividend i.e., Gabelli Dividend and Apollo Tactical go up and down completely randomly.

Pair Corralation between Gabelli Dividend and Apollo Tactical

If you would invest  2,394  in Gabelli Dividend Income on September 1, 2024 and sell it today you would earn a total of  165.00  from holding Gabelli Dividend Income or generate 6.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	4.76%
Values	Daily Returns

Gabelli Dividend Income  vs.  Apollo Tactical Income

Gabelli Dividend Income

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Dividend Income are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly uncertain fundamental indicators, Gabelli Dividend may actually be approaching a critical reversion point that can send shares even higher in December 2024.

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.

Pair Trading with Gabelli Dividend and Apollo Tactical

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

The idea behind Gabelli Dividend Income and Apollo Tactical Income 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..