Correlation Between EAT WELL and Apple
Can any of the company-specific risk be diversified away by investing in both EAT WELL 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 EAT WELL and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAT WELL INVESTMENT and Apple Inc, you can compare the effects of market volatilities on EAT WELL 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 EAT WELL with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAT WELL and Apple.
Diversification Opportunities for EAT WELL and Apple
Pay attention - limited upside
The 3 months correlation between EAT and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAT WELL INVESTMENT and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and EAT WELL 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 EAT WELL INVESTMENT 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 EAT WELL i.e., EAT WELL and Apple go up and down completely randomly.
Pair Corralation between EAT WELL and Apple
Assuming the 90 days trading horizon EAT WELL INVESTMENT is expected to under-perform the Apple. In addition to that, EAT WELL is 1.67 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 0.07 per unit of volatility. If you would invest 15,619 in Apple Inc on August 30, 2024 and sell it today you would earn a total of 6,671 from holding Apple Inc or generate 42.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
EAT WELL INVESTMENT vs. Apple Inc
Performance |
| Timeline |
| EAT WELL INVESTMENT |
| Apple Inc |
EAT WELL and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAT WELL and Apple
The main advantage of trading using opposite EAT WELL and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAT WELL 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.| EAT WELL vs. Perseus Mining Limited | EAT WELL vs. NISSIN FOODS HLDGS | EAT WELL vs. LIFEWAY FOODS | EAT WELL vs. Lifeway Foods |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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