Correlation Between Apple and GLATFELTER
Can any of the company-specific risk be diversified away by investing in both Apple and GLATFELTER 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 GLATFELTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and GLATFELTER, you can compare the effects of market volatilities on Apple and GLATFELTER 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 GLATFELTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and GLATFELTER.
Diversification Opportunities for Apple and GLATFELTER
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and GLATFELTER is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and GLATFELTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLATFELTER 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 GLATFELTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLATFELTER has no effect on the direction of Apple i.e., Apple and GLATFELTER go up and down completely randomly.
Pair Corralation between Apple and GLATFELTER
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.23 times more return on investment than GLATFELTER. However, Apple Inc is 4.34 times less risky than GLATFELTER. It trades about 0.1 of its potential returns per unit of risk. GLATFELTER is currently generating about 0.01 per unit of risk. If you would invest 12,116 in Apple Inc on September 17, 2024 and sell it today you would earn a total of 11,499 from holding Apple Inc or generate 94.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Apple Inc vs. GLATFELTER
Performance |
| Timeline |
| Apple Inc |
| GLATFELTER |
Apple and GLATFELTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and GLATFELTER
The main advantage of trading using opposite Apple and GLATFELTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, GLATFELTER 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 GLATFELTER will offset losses from the drop in GLATFELTER's long position.| Apple vs. Soken Chemical Engineering | Apple vs. THRACE PLASTICS | Apple vs. Heidelberg Materials AG | Apple vs. Hyster Yale Materials Handling |
| GLATFELTER vs. FORMPIPE SOFTWARE AB | GLATFELTER vs. Major Drilling Group | GLATFELTER vs. PRECISION DRILLING P | GLATFELTER vs. VITEC SOFTWARE GROUP |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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