Correlation Between Apple and Advanced Health
Can any of the company-specific risk be diversified away by investing in both Apple and Advanced Health 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 Advanced Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Advanced Health Intelligence, you can compare the effects of market volatilities on Apple and Advanced Health 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 Advanced Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Advanced Health.
Diversification Opportunities for Apple and Advanced Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Advanced Health Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Health Inte 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 Advanced Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Health Inte has no effect on the direction of Apple i.e., Apple and Advanced Health go up and down completely randomly.
Pair Corralation between Apple and Advanced Health
Given the investment horizon of 90 days Apple Inc is expected to generate 0.37 times more return on investment than Advanced Health. However, Apple Inc is 2.69 times less risky than Advanced Health. It trades about 0.12 of its potential returns per unit of risk. Advanced Health Intelligence is currently generating about -0.02 per unit of risk. If you would invest 19,182 in Apple Inc on August 29, 2024 and sell it today you would earn a total of 4,311 from holding Apple Inc or generate 22.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Advanced Health Intelligence
Performance |
| Timeline |
| Apple Inc |
| Advanced Health Inte |
Apple and Advanced Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Advanced Health
The main advantage of trading using opposite Apple and Advanced Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Advanced Health 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 Advanced Health will offset losses from the drop in Advanced Health's long position.The idea behind Apple Inc and Advanced Health Intelligence 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.| Advanced Health vs. Siriuspoint | Advanced Health vs. AmTrust Financial Services | Advanced Health vs. Pintec Technology Holdings | Advanced Health vs. Barings BDC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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