Correlation Between Apple and DATA MODUL
Can any of the company-specific risk be diversified away by investing in both Apple and DATA MODUL 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 DATA MODUL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and DATA MODUL , you can compare the effects of market volatilities on Apple and DATA MODUL 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 DATA MODUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and DATA MODUL.
Diversification Opportunities for Apple and DATA MODUL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and DATA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and DATA MODUL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATA MODUL 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 DATA MODUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATA MODUL has no effect on the direction of Apple i.e., Apple and DATA MODUL go up and down completely randomly.
Pair Corralation between Apple and DATA MODUL
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the DATA MODUL. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.43 times less risky than DATA MODUL. The stock trades about -0.5 of its potential returns per unit of risk. The DATA MODUL is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 2,680 in DATA MODUL on October 24, 2024 and sell it today you would lose (120.00) from holding DATA MODUL or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. DATA MODUL
Performance |
| Timeline |
| Apple Inc |
| DATA MODUL |
Apple and DATA MODUL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and DATA MODUL
The main advantage of trading using opposite Apple and DATA MODUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, DATA MODUL 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 DATA MODUL will offset losses from the drop in DATA MODUL's long position.| Apple vs. Pentair plc | Apple vs. CAREER EDUCATION | Apple vs. DELTA AIR LINES | Apple vs. CHINA EDUCATION GROUP |
| DATA MODUL vs. Sumitomo Rubber Industries | DATA MODUL vs. THRACE PLASTICS | DATA MODUL vs. USWE SPORTS AB | DATA MODUL vs. ANTA SPORTS PRODUCT |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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