Correlation Between Apple and Klondike Gold
Can any of the company-specific risk be diversified away by investing in both Apple and Klondike Gold 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 Klondike Gold 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 Klondike Gold Corp, you can compare the effects of market volatilities on Apple and Klondike Gold 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 Klondike Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Klondike Gold.
Diversification Opportunities for Apple and Klondike Gold
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and Klondike is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Klondike Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klondike Gold Corp 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 Klondike Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klondike Gold Corp has no effect on the direction of Apple i.e., Apple and Klondike Gold go up and down completely randomly.
Pair Corralation between Apple and Klondike Gold
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.37 times more return on investment than Klondike Gold. However, Apple Inc CDR is 2.7 times less risky than Klondike Gold. It trades about -0.08 of its potential returns per unit of risk. Klondike Gold Corp is currently generating about -0.08 per unit of risk. If you would invest 3,550 in Apple Inc CDR on November 9, 2024 and sell it today you would lose (143.00) from holding Apple Inc CDR or give up 4.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc CDR vs. Klondike Gold Corp
Performance |
| Timeline |
| Apple Inc CDR |
| Klondike Gold Corp |
Apple and Klondike Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Klondike Gold
The main advantage of trading using opposite Apple and Klondike Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Klondike Gold 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 Klondike Gold will offset losses from the drop in Klondike Gold's long position.| Apple vs. Upstart Investments | Apple vs. Quipt Home Medical | Apple vs. AKITA Drilling | Apple vs. Farstarcap Investment Corp |
| Klondike Gold vs. Golden Goliath Resources | Klondike Gold vs. Minera Alamos | Klondike Gold vs. Klondike Silver Corp | Klondike Gold vs. Metallic Minerals 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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