Correlation Between Apple and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both Apple and Safestore Holdings 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 Safestore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Safestore Holdings plc, you can compare the effects of market volatilities on Apple and Safestore Holdings 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Safestore Holdings.
Diversification Opportunities for Apple and Safestore Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Safestore is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of Apple i.e., Apple and Safestore Holdings go up and down completely randomly.
Pair Corralation between Apple and Safestore Holdings
Given the investment horizon of 90 days Apple Inc is expected to generate 1.03 times more return on investment than Safestore Holdings. However, Apple is 1.03 times more volatile than Safestore Holdings plc. It trades about -0.06 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about -0.09 per unit of risk. If you would invest 24,385 in Apple Inc on November 2, 2024 and sell it today you would lose (626.00) from holding Apple Inc or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Safestore Holdings plc
Performance |
| Timeline |
| Apple Inc |
| Safestore Holdings plc |
Apple and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Safestore Holdings
The main advantage of trading using opposite Apple and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| Apple vs. Rigetti Computing | Apple vs. D Wave Quantum | Apple vs. Desktop Metal | Apple vs. Quantum Computing |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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