Correlation Between Apple and Corus Entertainment
Can any of the company-specific risk be diversified away by investing in both Apple and Corus Entertainment 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 Apple and Corus Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc CDR and Corus Entertainment, you can compare the effects of market volatilities on Apple and Corus Entertainment 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 Apple with a short position of Corus Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Corus Entertainment.
Diversification Opportunities for Apple and Corus Entertainment
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Corus is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Corus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corus Entertainment and Apple 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 Apple Inc CDR are associated (or correlated) with Corus Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corus Entertainment has no effect on the direction of Apple i.e., Apple and Corus Entertainment go up and down completely randomly.
Pair Corralation between Apple and Corus Entertainment
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.16 times more return on investment than Corus Entertainment. However, Apple Inc CDR is 6.08 times less risky than Corus Entertainment. It trades about 0.13 of its potential returns per unit of risk. Corus Entertainment is currently generating about -0.16 per unit of risk. If you would invest 3,433 in Apple Inc CDR on September 13, 2024 and sell it today you would earn a total of 179.00 from holding Apple Inc CDR or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc CDR vs. Corus Entertainment
Performance |
| Timeline |
| Apple Inc CDR |
| Corus Entertainment |
Apple and Corus Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Corus Entertainment
The main advantage of trading using opposite Apple and Corus Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Corus Entertainment 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 Corus Entertainment will offset losses from the drop in Corus Entertainment's long position.| Apple vs. NeXGold Mining Corp | Apple vs. Tree Island Steel | Apple vs. North American Construction | Apple vs. DIRTT Environmental Solutions |
| Corus Entertainment vs. Royal Helium | Corus Entertainment vs. Excelsior Mining Corp | Corus Entertainment vs. Vista Gold | Corus Entertainment vs. Intermap Technologies Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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