Correlation Between Apple and Maple Peak
Can any of the company-specific risk be diversified away by investing in both Apple and Maple Peak 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 Maple Peak 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 Maple Peak Investments, you can compare the effects of market volatilities on Apple and Maple Peak 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 Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Maple Peak.
Diversification Opportunities for Apple and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Maple Peak Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Peak Investments 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 Maple Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Peak Investments has no effect on the direction of Apple i.e., Apple and Maple Peak go up and down completely randomly.
Pair Corralation between Apple and Maple Peak
If you would invest 3,374 in Apple Inc CDR on August 29, 2024 and sell it today you would earn a total of 69.00 from holding Apple Inc CDR or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc CDR vs. Maple Peak Investments
Performance |
| Timeline |
| Apple Inc CDR |
| Maple Peak Investments |
Apple and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Maple Peak
The main advantage of trading using opposite Apple and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Maple Peak 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 Maple Peak will offset losses from the drop in Maple Peak's long position.| Apple vs. Berkshire Hathaway CDR | Apple vs. JPMorgan Chase Co | Apple vs. Bank of America | Apple vs. Alphabet Inc CDR |
| Maple Peak vs. Eros Resources Corp | Maple Peak vs. Apple Inc CDR | Maple Peak vs. European Residential Real | Maple Peak vs. Canadian Utilities Ltd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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