Correlation Between Apple and Lenovo Group
Can any of the company-specific risk be diversified away by investing in both Apple and Lenovo Group 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 Lenovo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Lenovo Group Limited, you can compare the effects of market volatilities on Apple and Lenovo Group 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 Lenovo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Lenovo Group.
Diversification Opportunities for Apple and Lenovo Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Lenovo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Lenovo Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenovo Group Limited 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 Lenovo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenovo Group Limited has no effect on the direction of Apple i.e., Apple and Lenovo Group go up and down completely randomly.
Pair Corralation between Apple and Lenovo Group
If you would invest 16,613 in Apple Inc on October 17, 2024 and sell it today you would earn a total of 6,107 from holding Apple Inc or generate 36.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.44% |
| Values | Daily Returns |
Apple Inc vs. Lenovo Group Limited
Performance |
| Timeline |
| Apple Inc |
| Lenovo Group Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apple and Lenovo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Lenovo Group
The main advantage of trading using opposite Apple and Lenovo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Lenovo Group 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 Lenovo Group will offset losses from the drop in Lenovo Group's long position.| Apple vs. Aedas Homes SA | Apple vs. Focus Home Interactive | Apple vs. Ribbon Communications | Apple vs. ADDUS HOMECARE |
| Lenovo Group vs. FORMPIPE SOFTWARE AB | Lenovo Group vs. Magic Software Enterprises | Lenovo Group vs. Kingdee International Software | Lenovo Group vs. Easy Software AG |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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