Correlation Between EVS Broadcast and Apple
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast 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 EVS Broadcast and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and Apple Inc, you can compare the effects of market volatilities on EVS Broadcast 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 EVS Broadcast with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Apple.
Diversification Opportunities for EVS Broadcast and Apple
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVS and Apple is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and EVS Broadcast 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 EVS Broadcast Equipment 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 EVS Broadcast i.e., EVS Broadcast and Apple go up and down completely randomly.
Pair Corralation between EVS Broadcast and Apple
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 1.08 times more return on investment than Apple. However, EVS Broadcast is 1.08 times more volatile than Apple Inc. It trades about 0.07 of its potential returns per unit of risk. Apple Inc is currently generating about 0.06 per unit of risk. If you would invest 2,864 in EVS Broadcast Equipment on August 28, 2024 and sell it today you would earn a total of 61.00 from holding EVS Broadcast Equipment or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Apple Inc
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Apple Inc |
EVS Broadcast and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Apple
The main advantage of trading using opposite EVS Broadcast and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast 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.| EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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