Correlation Between Apple and Apple
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Apple Inc, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Apple.
Diversification Opportunities for Apple and Apple
Almost no diversification
The 3 months correlation between Apple and Apple is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 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 Apple i.e., Apple and Apple go up and down completely randomly.
Pair Corralation between Apple and Apple
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.92 times more return on investment than Apple. However, Apple Inc is 1.09 times less risky than Apple. It trades about 0.05 of its potential returns per unit of risk. Apple Inc is currently generating about 0.04 per unit of risk. If you would invest 21,629 in Apple Inc on August 24, 2024 and sell it today you would earn a total of 266.00 from holding Apple Inc or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Apple Inc
Performance |
| Timeline |
| Apple Inc |
| Apple Inc |
Apple and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Apple
The main advantage of trading using opposite Apple and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. INFORMATION SVC GRP | Apple vs. DATANG INTL POW | Apple vs. JIAHUA STORES | Apple vs. Qurate Retail Series |
| Apple vs. REVO INSURANCE SPA | Apple vs. TreeHouse Foods | Apple vs. Astral Foods Limited | Apple vs. INDOFOOD AGRI RES |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |