Correlation Between Avance Gas and Apple
Can any of the company-specific risk be diversified away by investing in both Avance Gas 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 Avance Gas and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avance Gas Holding and Apple Inc, you can compare the effects of market volatilities on Avance Gas 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 Avance Gas with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avance Gas and Apple.
Diversification Opportunities for Avance Gas and Apple
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Avance and Apple is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Avance Gas Holding and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Avance Gas 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 Avance Gas Holding 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 Avance Gas i.e., Avance Gas and Apple go up and down completely randomly.
Pair Corralation between Avance Gas and Apple
Assuming the 90 days trading horizon Avance Gas Holding is expected to generate 2.09 times more return on investment than Apple. However, Avance Gas is 2.09 times more volatile than Apple Inc. It trades about 0.22 of its potential returns per unit of risk. Apple Inc is currently generating about 0.19 per unit of risk. If you would invest 863.00 in Avance Gas Holding on August 31, 2024 and sell it today you would earn a total of 118.00 from holding Avance Gas Holding or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Avance Gas Holding vs. Apple Inc
Performance |
| Timeline |
| Avance Gas Holding |
| Apple Inc |
Avance Gas and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avance Gas and Apple
The main advantage of trading using opposite Avance Gas and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avance Gas 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.| Avance Gas vs. Entravision Communications | Avance Gas vs. PARKEN Sport Entertainment | Avance Gas vs. Beijing Media | Avance Gas vs. XLMedia PLC |
| Apple vs. NTG Nordic Transport | Apple vs. COPLAND ROAD CAPITAL | Apple vs. SBA Communications Corp | Apple vs. T Mobile |
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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