Correlation Between KERNEL HLDG and Apple
Can any of the company-specific risk be diversified away by investing in both KERNEL HLDG and Apple 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 KERNEL HLDG and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KERNEL HLDG and Apple Inc, you can compare the effects of market volatilities on KERNEL HLDG and Apple 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 KERNEL HLDG with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of KERNEL HLDG and Apple.
Diversification Opportunities for KERNEL HLDG and Apple
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KERNEL and Apple is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding KERNEL HLDG and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and KERNEL HLDG 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 KERNEL HLDG are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of KERNEL HLDG i.e., KERNEL HLDG and Apple go up and down completely randomly.
Pair Corralation between KERNEL HLDG and Apple
Assuming the 90 days trading horizon KERNEL HLDG is expected to generate 1.38 times less return on investment than Apple. In addition to that, KERNEL HLDG is 1.04 times more volatile than Apple Inc. It trades about 0.05 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.07 per unit of volatility. If you would invest 23,360 in Apple Inc on October 9, 2024 and sell it today you would earn a total of 225.00 from holding Apple Inc or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KERNEL HLDG vs. Apple Inc
Performance |
| Timeline |
| KERNEL HLDG |
| Apple Inc |
KERNEL HLDG and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KERNEL HLDG and Apple
The main advantage of trading using opposite KERNEL HLDG and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KERNEL HLDG position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| KERNEL HLDG vs. EBRO FOODS | KERNEL HLDG vs. REVO INSURANCE SPA | KERNEL HLDG vs. Erste Group Bank | KERNEL HLDG vs. Astral Foods Limited |
| Apple vs. BOSTON BEER A | Apple vs. INDOFOOD AGRI RES | Apple vs. Fevertree Drinks PLC | Apple vs. LIFEWAY FOODS |
Check out your portfolio center.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..
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