Correlation Between Apple and GREENFIRST FORPRODINC
Can any of the company-specific risk be diversified away by investing in both Apple and GREENFIRST FORPRODINC 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 GREENFIRST FORPRODINC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and GREENFIRST FORPRODINC, you can compare the effects of market volatilities on Apple and GREENFIRST FORPRODINC 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 GREENFIRST FORPRODINC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and GREENFIRST FORPRODINC.
Diversification Opportunities for Apple and GREENFIRST FORPRODINC
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and GREENFIRST is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and GREENFIRST FORPRODINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENFIRST FORPRODINC 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 GREENFIRST FORPRODINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENFIRST FORPRODINC has no effect on the direction of Apple i.e., Apple and GREENFIRST FORPRODINC go up and down completely randomly.
Pair Corralation between Apple and GREENFIRST FORPRODINC
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the GREENFIRST FORPRODINC. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 2.11 times less risky than GREENFIRST FORPRODINC. The stock trades about -0.1 of its potential returns per unit of risk. The GREENFIRST FORPRODINC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 373.00 in GREENFIRST FORPRODINC on October 14, 2024 and sell it today you would earn a total of 1.00 from holding GREENFIRST FORPRODINC or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.53% |
| Values | Daily Returns |
Apple Inc vs. GREENFIRST FORPRODINC
Performance |
| Timeline |
| Apple Inc |
| GREENFIRST FORPRODINC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Apple and GREENFIRST FORPRODINC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and GREENFIRST FORPRODINC
The main advantage of trading using opposite Apple and GREENFIRST FORPRODINC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, GREENFIRST FORPRODINC 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 GREENFIRST FORPRODINC will offset losses from the drop in GREENFIRST FORPRODINC's long position.| Apple vs. Salesforce | Apple vs. Shenandoah Telecommunications | Apple vs. Tradeweb Markets | Apple vs. Fast Retailing Co |
| GREENFIRST FORPRODINC vs. Apple Inc | GREENFIRST FORPRODINC vs. Apple Inc | GREENFIRST FORPRODINC vs. Apple Inc | GREENFIRST FORPRODINC vs. Apple 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 CEOs Directory module to screen CEOs from public companies around the world.
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