Correlation Between Apple and Steppe Gold
Can any of the company-specific risk be diversified away by investing in both Apple and Steppe 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 Steppe 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 Steppe Gold, you can compare the effects of market volatilities on Apple and Steppe 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 Steppe Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Steppe Gold.
Diversification Opportunities for Apple and Steppe Gold
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Steppe is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Steppe Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steppe Gold 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 Steppe Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steppe Gold has no effect on the direction of Apple i.e., Apple and Steppe Gold go up and down completely randomly.
Pair Corralation between Apple and Steppe Gold
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.46 times more return on investment than Steppe Gold. However, Apple Inc CDR is 2.2 times less risky than Steppe Gold. It trades about 0.07 of its potential returns per unit of risk. Steppe Gold is currently generating about -0.02 per unit of risk. If you would invest 2,290 in Apple Inc CDR on November 2, 2024 and sell it today you would earn a total of 1,183 from holding Apple Inc CDR or generate 51.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc CDR vs. Steppe Gold
Performance |
| Timeline |
| Apple Inc CDR |
| Steppe Gold |
Apple and Steppe Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Steppe Gold
The main advantage of trading using opposite Apple and Steppe Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Steppe 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 Steppe Gold will offset losses from the drop in Steppe Gold's long position.| Apple vs. Royal Road Minerals | Apple vs. Verizon Communications CDR | Apple vs. Titanium Transportation Group | Apple vs. North American Construction |
| Steppe Gold vs. Tudor Gold Corp | Steppe Gold vs. Erdene Resource Development | Steppe Gold vs. Troilus Gold Corp | Steppe Gold vs. Liberty Gold 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |