Correlation Between Apple and Sangoma Technologies
Can any of the company-specific risk be diversified away by investing in both Apple and Sangoma Technologies 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 Sangoma Technologies 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 Sangoma Technologies Corp, you can compare the effects of market volatilities on Apple and Sangoma Technologies 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 Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Sangoma Technologies.
Diversification Opportunities for Apple and Sangoma Technologies
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apple and Sangoma is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies 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 Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of Apple i.e., Apple and Sangoma Technologies go up and down completely randomly.
Pair Corralation between Apple and Sangoma Technologies
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.34 times more return on investment than Sangoma Technologies. However, Apple Inc CDR is 2.97 times less risky than Sangoma Technologies. It trades about 0.6 of its potential returns per unit of risk. Sangoma Technologies Corp is currently generating about 0.14 per unit of risk. If you would invest 3,287 in Apple Inc CDR on September 13, 2024 and sell it today you would earn a total of 325.00 from holding Apple Inc CDR or generate 9.89% 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. Sangoma Technologies Corp
Performance |
| Timeline |
| Apple Inc CDR |
| Sangoma Technologies Corp |
Apple and Sangoma Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Sangoma Technologies
The main advantage of trading using opposite Apple and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Sangoma Technologies 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' long position.| Apple vs. NeXGold Mining Corp | Apple vs. Tree Island Steel | Apple vs. North American Construction | Apple vs. DIRTT Environmental Solutions |
| Sangoma Technologies vs. Walmart Inc CDR | Sangoma Technologies vs. Amazon CDR | Sangoma Technologies vs. Berkshire Hathaway CDR | Sangoma Technologies vs. UnitedHealth Group 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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