Correlation Between Apple and HUDSON GLOBAL
Can any of the company-specific risk be diversified away by investing in both Apple and HUDSON GLOBAL 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 HUDSON GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and HUDSON GLOBAL INCDL 001, you can compare the effects of market volatilities on Apple and HUDSON GLOBAL 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 HUDSON GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and HUDSON GLOBAL.
Diversification Opportunities for Apple and HUDSON GLOBAL
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and HUDSON is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and HUDSON GLOBAL INCDL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUDSON GLOBAL INCDL 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 HUDSON GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUDSON GLOBAL INCDL has no effect on the direction of Apple i.e., Apple and HUDSON GLOBAL go up and down completely randomly.
Pair Corralation between Apple and HUDSON GLOBAL
Assuming the 90 days trading horizon Apple is expected to generate 1.24 times less return on investment than HUDSON GLOBAL. But when comparing it to its historical volatility, Apple Inc is 2.64 times less risky than HUDSON GLOBAL. It trades about 0.12 of its potential returns per unit of risk. HUDSON GLOBAL INCDL 001 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,370 in HUDSON GLOBAL INCDL 001 on August 30, 2024 and sell it today you would earn a total of 40.00 from holding HUDSON GLOBAL INCDL 001 or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apple Inc vs. HUDSON GLOBAL INCDL 001
Performance |
| Timeline |
| Apple Inc |
| HUDSON GLOBAL INCDL |
Apple and HUDSON GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and HUDSON GLOBAL
The main advantage of trading using opposite Apple and HUDSON GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, HUDSON GLOBAL 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 HUDSON GLOBAL will offset losses from the drop in HUDSON GLOBAL's long position.| Apple vs. Charter Communications | Apple vs. SBA Communications Corp | Apple vs. LION ONE METALS | Apple vs. Perseus Mining Limited |
| HUDSON GLOBAL vs. REINET INVESTMENTS SCA | HUDSON GLOBAL vs. Virtus Investment Partners | HUDSON GLOBAL vs. SEI INVESTMENTS | HUDSON GLOBAL vs. Apollo Investment Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |