Correlation Between Apollo Global and Mattel

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

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

Diversification Opportunities for Apollo Global and Mattel

-0.43

Correlation Coefficient

Apollo Global  Mattel

Very good diversification

The 3 months correlation between Apollo and Mattel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Global Management and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc and Apollo Global 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 Global Management are associated (or correlated) with Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Apollo Global i.e., Apollo Global and Mattel go up and down completely randomly.

Pair Corralation between Apollo Global and Mattel

If you would invest  0.00  in Apollo Global Management on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Apollo Global Management or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.2%
Values	Daily Returns

Apollo Global Management  vs.  Mattel Inc

Apollo Global Management

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Apollo Global Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Apollo Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Mattel Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mattel Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mattel is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Apollo Global and Mattel

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

The idea behind Apollo Global Management and Mattel Inc 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.