Correlation Between Acm Research and APPLE

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Can any of the company-specific risk be diversified away by investing in both Acm Research and APPLE 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 Acm Research and APPLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acm Research and APPLE INC, you can compare the effects of market volatilities on Acm Research and APPLE 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 Acm Research with a short position of APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acm Research and APPLE.

Diversification Opportunities for Acm Research and APPLE

-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between Acm and APPLE is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC and Acm Research 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 Acm Research are associated (or correlated) with APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC has no effect on the direction of Acm Research i.e., Acm Research and APPLE go up and down completely randomly.

Pair Corralation between Acm Research and APPLE

Given the investment horizon of 90 days Acm Research is expected to under-perform the APPLE. In addition to that, Acm Research is 2.89 times more volatile than APPLE INC. It trades about -0.17 of its total potential returns per unit of risk. APPLE INC is currently generating about -0.14 per unit of volatility. If you would invest  6,045  in APPLE INC on September 14, 2024 and sell it today you would lose (311.00) from holding APPLE INC or give up 5.14% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Acm Research  vs.  APPLE INC

 Performance 
       Timeline  
Acm Research 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Acm Research is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.
APPLE INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days APPLE INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for APPLE INC investors.

Acm Research and APPLE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Acm Research and APPLE

The main advantage of trading using opposite Acm Research and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acm Research position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.
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The idea behind Acm Research and APPLE INC 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.
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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