Correlation Between Apple and Khiron Life
Can any of the company-specific risk be diversified away by investing in both Apple and Khiron Life 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 Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Khiron Life Sciences, you can compare the effects of market volatilities on Apple and Khiron Life 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 Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Khiron Life.
Diversification Opportunities for Apple and Khiron Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Khiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences 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 Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of Apple i.e., Apple and Khiron Life go up and down completely randomly.
Pair Corralation between Apple and Khiron Life
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.31 times more return on investment than Khiron Life. However, Apple Inc is 3.21 times less risky than Khiron Life. It trades about 0.07 of its potential returns per unit of risk. Khiron Life Sciences is currently generating about 0.01 per unit of risk. If you would invest 13,537 in Apple Inc on August 30, 2024 and sell it today you would earn a total of 8,753 from holding Apple Inc or generate 64.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Khiron Life Sciences
Performance |
| Timeline |
| Apple Inc |
| Khiron Life Sciences |
Apple and Khiron Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Khiron Life
The main advantage of trading using opposite Apple and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.| Apple vs. Ryanair Holdings plc | Apple vs. SBA Communications Corp | Apple vs. Consolidated Communications Holdings | Apple vs. Singapore Telecommunications Limited |
| Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |