Correlation Between Apple and SG Micro
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By analyzing existing cross correlation between Apple Inc and SG Micro Corp, you can compare the effects of market volatilities on Apple and SG Micro 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 SG Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and SG Micro.
Diversification Opportunities for Apple and SG Micro
Good diversification
The 3 months correlation between Apple and 300661 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SG Micro Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Micro 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 are associated (or correlated) with SG Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Micro Corp has no effect on the direction of Apple i.e., Apple and SG Micro go up and down completely randomly.
Pair Corralation between Apple and SG Micro
Given the investment horizon of 90 days Apple is expected to generate 2.17 times less return on investment than SG Micro. But when comparing it to its historical volatility, Apple Inc is 3.31 times less risky than SG Micro. It trades about 0.08 of its potential returns per unit of risk. SG Micro Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,108 in SG Micro Corp on November 3, 2024 and sell it today you would earn a total of 1,333 from holding SG Micro Corp or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.2% |
| Values | Daily Returns |
Apple Inc vs. SG Micro Corp
Performance |
| Timeline |
| Apple Inc |
| SG Micro Corp |
Apple and SG Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and SG Micro
The main advantage of trading using opposite Apple and SG Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, SG Micro 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 SG Micro will offset losses from the drop in SG Micro's long position.The idea behind Apple Inc and SG Micro Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SG Micro vs. Tangel Publishing | SG Micro vs. Qtone Education Group | SG Micro vs. Jiangsu Phoenix Publishing | SG Micro vs. Soyea Technology Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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