Correlation Between Apple and Ocado Group
Can any of the company-specific risk be diversified away by investing in both Apple and Ocado Group 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 Apple and Ocado Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Ocado Group PLC, you can compare the effects of market volatilities on Apple and Ocado Group 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 Apple with a short position of Ocado Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Ocado Group.
Diversification Opportunities for Apple and Ocado Group
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Ocado is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Ocado Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocado Group PLC and Apple 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 Apple Inc are associated (or correlated) with Ocado Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocado Group PLC has no effect on the direction of Apple i.e., Apple and Ocado Group go up and down completely randomly.
Pair Corralation between Apple and Ocado Group
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.39 times more return on investment than Ocado Group. However, Apple is 1.39 times more volatile than Ocado Group PLC. It trades about 0.0 of its potential returns per unit of risk. Ocado Group PLC is currently generating about -0.22 per unit of risk. If you would invest 24,550 in Apple Inc on October 11, 2024 and sell it today you would lose (300.00) from holding Apple Inc or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Ocado Group PLC
Performance |
| Timeline |
| Apple Inc |
| Ocado Group PLC |
Apple and Ocado Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Ocado Group
The main advantage of trading using opposite Apple and Ocado Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Ocado Group 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 Ocado Group will offset losses from the drop in Ocado Group's long position.| Apple vs. Broadridge Financial Solutions | Apple vs. Young Cos Brewery | Apple vs. JB Hunt Transport | Apple vs. Porvair plc |
| Ocado Group vs. Toyota Motor Corp | Ocado Group vs. Fannie Mae | Ocado Group vs. Apple Inc | Ocado Group vs. State Bank of |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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