Correlation Between Apple and Kerry Logistics
Can any of the company-specific risk be diversified away by investing in both Apple and Kerry Logistics 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 Kerry Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Kerry Logistics Network, you can compare the effects of market volatilities on Apple and Kerry Logistics 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 Kerry Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Kerry Logistics.
Diversification Opportunities for Apple and Kerry Logistics
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apple and Kerry is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Kerry Logistics Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Logistics Network 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 Kerry Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Logistics Network has no effect on the direction of Apple i.e., Apple and Kerry Logistics go up and down completely randomly.
Pair Corralation between Apple and Kerry Logistics
If you would invest 22,177 in Apple Inc on September 3, 2024 and sell it today you would earn a total of 1,556 from holding Apple Inc or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Apple Inc vs. Kerry Logistics Network
Performance |
| Timeline |
| Apple Inc |
| Kerry Logistics Network |
Apple and Kerry Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Kerry Logistics
The main advantage of trading using opposite Apple and Kerry Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Kerry Logistics 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 Kerry Logistics will offset losses from the drop in Kerry Logistics' long position.The idea behind Apple Inc and Kerry Logistics Network 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.| Kerry Logistics vs. FiscalNote Holdings | Kerry Logistics vs. Delta Air Lines | Kerry Logistics vs. CDW Corp | Kerry Logistics vs. Q2 Holdings |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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