Correlation Between Corporate Travel and Apple
Can any of the company-specific risk be diversified away by investing in both Corporate Travel 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 Corporate Travel and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and Apple Inc, you can compare the effects of market volatilities on Corporate Travel 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 Corporate Travel with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and Apple.
Diversification Opportunities for Corporate Travel and Apple
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corporate and Apple is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Corporate Travel 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 Corporate Travel Management 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 Corporate Travel i.e., Corporate Travel and Apple go up and down completely randomly.
Pair Corralation between Corporate Travel and Apple
Assuming the 90 days trading horizon Corporate Travel is expected to generate 3.08 times less return on investment than Apple. In addition to that, Corporate Travel is 1.79 times more volatile than Apple Inc. It trades about 0.01 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.08 per unit of volatility. If you would invest 13,425 in Apple Inc on August 30, 2024 and sell it today you would earn a total of 8,800 from holding Apple Inc or generate 65.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Corporate Travel Management vs. Apple Inc
Performance |
| Timeline |
| Corporate Travel Man |
| Apple Inc |
Corporate Travel and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Travel and Apple
The main advantage of trading using opposite Corporate Travel and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel 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.| Corporate Travel vs. Strategic Investments AS | Corporate Travel vs. CapitaLand Investment Limited | Corporate Travel vs. Evolution Mining Limited | Corporate Travel vs. CDL INVESTMENT |
| Apple vs. PLAYSTUDIOS A DL 0001 | Apple vs. COLUMBIA SPORTSWEAR | Apple vs. LG Display Co | Apple vs. Aedas Homes SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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