Correlation Between Marygold Companies and Apollo Global

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

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

Diversification Opportunities for Marygold Companies and Apollo Global

0.57

Correlation Coefficient

Marygold Companies  Apollo Global

Very weak diversification

The 3 months correlation between Marygold and Apollo is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Marygold Companies and Apollo Global Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Management and Marygold Companies 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 Marygold Companies are associated (or correlated) with Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Management has no effect on the direction of Marygold Companies i.e., Marygold Companies and Apollo Global go up and down completely randomly.

Pair Corralation between Marygold Companies and Apollo Global

Given the investment horizon of 90 days Marygold Companies is expected to under-perform the Apollo Global. In addition to that, Marygold Companies is 2.47 times more volatile than Apollo Global Management. It trades about -0.13 of its total potential returns per unit of risk. Apollo Global Management is currently generating about -0.11 per unit of volatility. If you would invest  17,114  in Apollo Global Management on December 21, 2024 and sell it today you would lose (2,637) from holding Apollo Global Management or give up 15.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Marygold Companies  vs.  Apollo Global Management

Marygold Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marygold Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Apollo Global Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollo Global Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Marygold Companies and Apollo Global

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

The idea behind Marygold Companies and Apollo Global Management 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..