Correlation Between Apple and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Apple and FEMALE HEALTH 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 FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and FEMALE HEALTH, you can compare the effects of market volatilities on Apple and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and FEMALE HEALTH.
Diversification Opportunities for Apple and FEMALE HEALTH
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and FEMALE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Apple i.e., Apple and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Apple and FEMALE HEALTH
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the FEMALE HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 7.3 times less risky than FEMALE HEALTH. The stock trades about -0.07 of its potential returns per unit of risk. The FEMALE HEALTH is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 63.00 in FEMALE HEALTH on November 4, 2024 and sell it today you would lose (8.00) from holding FEMALE HEALTH or give up 12.7% 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. FEMALE HEALTH
Performance |
| Timeline |
| Apple Inc |
| FEMALE HEALTH |
Apple and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and FEMALE HEALTH
The main advantage of trading using opposite Apple and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Apple vs. DISTRICT METALS | Apple vs. Jacquet Metal Service | Apple vs. Harmony Gold Mining | Apple vs. Siamgas And Petrochemicals |
| FEMALE HEALTH vs. Delta Air Lines | FEMALE HEALTH vs. TRADELINK ELECTRON | FEMALE HEALTH vs. Tradeweb Markets | FEMALE HEALTH vs. DELTA AIR LINES |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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