Correlation Between Apple and Assura PLC
Can any of the company-specific risk be diversified away by investing in both Apple and Assura PLC 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 Assura PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Assura PLC, you can compare the effects of market volatilities on Apple and Assura PLC 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 Assura PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Assura PLC.
Diversification Opportunities for Apple and Assura PLC
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Assura is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Assura PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assura PLC 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 Assura PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assura PLC has no effect on the direction of Apple i.e., Apple and Assura PLC go up and down completely randomly.
Pair Corralation between Apple and Assura PLC
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.48 times more return on investment than Assura PLC. However, Apple Inc is 2.07 times less risky than Assura PLC. It trades about 0.09 of its potential returns per unit of risk. Assura PLC is currently generating about -0.05 per unit of risk. If you would invest 21,609 in Apple Inc on August 30, 2024 and sell it today you would earn a total of 586.00 from holding Apple Inc or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apple Inc vs. Assura PLC
Performance |
| Timeline |
| Apple Inc |
| Assura PLC |
Apple and Assura PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Assura PLC
The main advantage of trading using opposite Apple and Assura PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Assura PLC 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 Assura PLC will offset losses from the drop in Assura PLC's long position.| Apple vs. Marie Brizard Wine | Apple vs. NAKED WINES PLC | Apple vs. PKSHA TECHNOLOGY INC | Apple vs. ACCSYS TECHPLC EO |
| Assura PLC vs. STRAYER EDUCATION | Assura PLC vs. TAL Education Group | Assura PLC vs. American Public Education | Assura PLC vs. CAREER EDUCATION |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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