Correlation Between SHIP HEALTHCARE and Apple
Can any of the company-specific risk be diversified away by investing in both SHIP HEALTHCARE 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 SHIP HEALTHCARE and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHIP HEALTHCARE HLDGINC and Apple Inc, you can compare the effects of market volatilities on SHIP HEALTHCARE 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 SHIP HEALTHCARE with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIP HEALTHCARE and Apple.
Diversification Opportunities for SHIP HEALTHCARE and Apple
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SHIP and Apple is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SHIP HEALTHCARE HLDGINC and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE i.e., SHIP HEALTHCARE and Apple go up and down completely randomly.
Pair Corralation between SHIP HEALTHCARE and Apple
Assuming the 90 days horizon SHIP HEALTHCARE is expected to generate 1.86 times less return on investment than Apple. In addition to that, SHIP HEALTHCARE is 2.02 times more volatile than Apple Inc. It trades about 0.21 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.79 per unit of volatility. If you would invest 21,145 in Apple Inc on September 13, 2024 and sell it today you would earn a total of 2,630 from holding Apple Inc or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHIP HEALTHCARE HLDGINC vs. Apple Inc
Performance |
| Timeline |
| SHIP HEALTHCARE HLDGINC |
| Apple Inc |
SHIP HEALTHCARE and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIP HEALTHCARE and Apple
The main advantage of trading using opposite SHIP HEALTHCARE and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIP HEALTHCARE 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.| SHIP HEALTHCARE vs. Superior Plus Corp | SHIP HEALTHCARE vs. NMI Holdings | SHIP HEALTHCARE vs. SIVERS SEMICONDUCTORS AB | SHIP HEALTHCARE vs. NorAm Drilling AS |
| Apple vs. Virtus Investment Partners | Apple vs. Chiba Bank | Apple vs. BANKINTER ADR 2007 | Apple vs. REVO INSURANCE SPA |
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.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |