Correlation Between Haier Smart and Apple
Can any of the company-specific risk be diversified away by investing in both Haier Smart 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 Haier Smart and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and Apple Inc, you can compare the effects of market volatilities on Haier Smart 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 Haier Smart with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and Apple.
Diversification Opportunities for Haier Smart and Apple
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Haier and Apple is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Haier Smart 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 Haier Smart Home 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 Haier Smart i.e., Haier Smart and Apple go up and down completely randomly.
Pair Corralation between Haier Smart and Apple
Assuming the 90 days trading horizon Haier Smart Home is expected to generate 0.86 times more return on investment than Apple. However, Haier Smart Home is 1.16 times less risky than Apple. It trades about 0.03 of its potential returns per unit of risk. Apple Inc is currently generating about -0.44 per unit of risk. If you would invest 178.00 in Haier Smart Home on October 28, 2024 and sell it today you would earn a total of 1.00 from holding Haier Smart Home or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. Apple Inc
Performance |
| Timeline |
| Haier Smart Home |
| Apple Inc |
Haier Smart and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and Apple
The main advantage of trading using opposite Haier Smart and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart 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.| Haier Smart vs. MAG SILVER | Haier Smart vs. Park Hotels Resorts | Haier Smart vs. Eurasia Mining Plc | Haier Smart vs. Hyatt Hotels |
| Apple vs. Wayside Technology Group | Apple vs. Spirent Communications plc | Apple vs. GMO Internet | Apple vs. Entravision Communications |
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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