Correlation Between Apple and Savaria
Can any of the company-specific risk be diversified away by investing in both Apple and Savaria 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 Savaria 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 Savaria, you can compare the effects of market volatilities on Apple and Savaria 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 Savaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Savaria.
Diversification Opportunities for Apple and Savaria
Very weak diversification
The 3 months correlation between Apple and Savaria is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Savaria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savaria 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 Savaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savaria has no effect on the direction of Apple i.e., Apple and Savaria go up and down completely randomly.
Pair Corralation between Apple and Savaria
Assuming the 90 days trading horizon Apple Inc CDR is expected to under-perform the Savaria. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc CDR is 1.5 times less risky than Savaria. The stock trades about -0.01 of its potential returns per unit of risk. The Savaria is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,264 in Savaria on August 25, 2024 and sell it today you would earn a total of 8.00 from holding Savaria or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc CDR vs. Savaria
Performance |
| Timeline |
| Apple Inc CDR |
| Savaria |
Apple and Savaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Savaria
The main advantage of trading using opposite Apple and Savaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Savaria 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 Savaria will offset losses from the drop in Savaria's long position.| Apple vs. MTY Food Group | Apple vs. Nicola Mining | Apple vs. Metalero Mining Corp | Apple vs. Maple Leaf Foods |
| Savaria vs. Microsoft Corp CDR | Savaria vs. Apple Inc CDR | Savaria vs. Alphabet Inc CDR | Savaria vs. Amazon CDR |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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