Correlation Between Apple and INDIKA ENERGY

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Apple and INDIKA ENERGY 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 INDIKA ENERGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and INDIKA ENERGY, you can compare the effects of market volatilities on Apple and INDIKA ENERGY 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 INDIKA ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and INDIKA ENERGY.

Diversification Opportunities for Apple and INDIKA ENERGY

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between Apple and INDIKA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and INDIKA ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDIKA ENERGY 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 INDIKA ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDIKA ENERGY has no effect on the direction of Apple i.e., Apple and INDIKA ENERGY go up and down completely randomly.

Pair Corralation between Apple and INDIKA ENERGY

Assuming the 90 days trading horizon Apple Inc is expected to generate 0.34 times more return on investment than INDIKA ENERGY. However, Apple Inc is 2.96 times less risky than INDIKA ENERGY. It trades about 0.56 of its potential returns per unit of risk. INDIKA ENERGY is currently generating about -0.09 per unit of risk. If you would invest  21,145  in Apple Inc on September 13, 2024 and sell it today you would earn a total of  2,570  from holding Apple Inc or generate 12.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  INDIKA ENERGY

 Performance 
       Timeline  
Apple Inc 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Apple unveiled solid returns over the last few months and may actually be approaching a breakup point.
INDIKA ENERGY 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in INDIKA ENERGY are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, INDIKA ENERGY is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Apple and INDIKA ENERGY Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and INDIKA ENERGY

The main advantage of trading using opposite Apple and INDIKA ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, INDIKA ENERGY 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 INDIKA ENERGY will offset losses from the drop in INDIKA ENERGY's long position.
The idea behind Apple Inc and INDIKA ENERGY pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format