Correlation Between Apple and ASTRA INTERNATIONAL
Can any of the company-specific risk be diversified away by investing in both Apple and ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and ASTRA INTERNATIONAL, you can compare the effects of market volatilities on Apple and ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and ASTRA INTERNATIONAL.
Diversification Opportunities for Apple and ASTRA INTERNATIONAL
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and ASTRA is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and ASTRA INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA INTERNATIONAL has no effect on the direction of Apple i.e., Apple and ASTRA INTERNATIONAL go up and down completely randomly.
Pair Corralation between Apple and ASTRA INTERNATIONAL
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.82 times more return on investment than ASTRA INTERNATIONAL. However, Apple Inc is 1.22 times less risky than ASTRA INTERNATIONAL. It trades about 0.06 of its potential returns per unit of risk. ASTRA INTERNATIONAL is currently generating about -0.05 per unit of risk. If you would invest 16,424 in Apple Inc on August 31, 2024 and sell it today you would earn a total of 6,026 from holding Apple Inc or generate 36.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Apple Inc vs. ASTRA INTERNATIONAL
Performance |
| Timeline |
| Apple Inc |
| ASTRA INTERNATIONAL |
Apple and ASTRA INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and ASTRA INTERNATIONAL
The main advantage of trading using opposite Apple and ASTRA INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, ASTRA INTERNATIONAL 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 ASTRA INTERNATIONAL will offset losses from the drop in ASTRA INTERNATIONAL's long position.| Apple vs. SIVERS SEMICONDUCTORS AB | Apple vs. Darden Restaurants | Apple vs. Reliance Steel Aluminum | Apple vs. Q2M Managementberatung AG |
| ASTRA INTERNATIONAL vs. United Utilities Group | ASTRA INTERNATIONAL vs. Calibre Mining Corp | ASTRA INTERNATIONAL vs. QBE Insurance Group | ASTRA INTERNATIONAL vs. REVO INSURANCE SPA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |