Correlation Between Apple and HEXINDO ADIPERKASA
Can any of the company-specific risk be diversified away by investing in both Apple and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and HEXINDO ADIPERKASA, you can compare the effects of market volatilities on Apple and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and HEXINDO ADIPERKASA.
Diversification Opportunities for Apple and HEXINDO ADIPERKASA
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and HEXINDO is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of Apple i.e., Apple and HEXINDO ADIPERKASA go up and down completely randomly.
Pair Corralation between Apple and HEXINDO ADIPERKASA
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.73 times more return on investment than HEXINDO ADIPERKASA. However, Apple Inc is 1.38 times less risky than HEXINDO ADIPERKASA. It trades about 0.12 of its potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about -0.35 per unit of risk. If you would invest 21,574 in Apple Inc on August 30, 2024 and sell it today you would earn a total of 716.00 from holding Apple Inc or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. HEXINDO ADIPERKASA
Performance |
| Timeline |
| Apple Inc |
| HEXINDO ADIPERKASA |
Apple and HEXINDO ADIPERKASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and HEXINDO ADIPERKASA
The main advantage of trading using opposite Apple and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA's long position.| Apple vs. Charter Communications | Apple vs. SBA Communications Corp | Apple vs. LION ONE METALS | Apple vs. Perseus Mining Limited |
| HEXINDO ADIPERKASA vs. SHIP HEALTHCARE HLDGINC | HEXINDO ADIPERKASA vs. Natural Health Trends | HEXINDO ADIPERKASA vs. Diamondrock Hospitality Co | HEXINDO ADIPERKASA vs. YOOMA WELLNESS INC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance |