Correlation Between Apple and REGAL HOTEL
Can any of the company-specific risk be diversified away by investing in both Apple and REGAL HOTEL 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 REGAL HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and REGAL HOTEL INTL, you can compare the effects of market volatilities on Apple and REGAL HOTEL 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 REGAL HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and REGAL HOTEL.
Diversification Opportunities for Apple and REGAL HOTEL
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and REGAL is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and REGAL HOTEL INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL HOTEL INTL 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 REGAL HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL HOTEL INTL has no effect on the direction of Apple i.e., Apple and REGAL HOTEL go up and down completely randomly.
Pair Corralation between Apple and REGAL HOTEL
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the REGAL HOTEL. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.52 times less risky than REGAL HOTEL. The stock trades about -0.45 of its potential returns per unit of risk. The REGAL HOTEL INTL is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 28.00 in REGAL HOTEL INTL on October 25, 2024 and sell it today you would earn a total of 0.00 from holding REGAL HOTEL INTL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. REGAL HOTEL INTL
Performance |
| Timeline |
| Apple Inc |
| REGAL HOTEL INTL |
Apple and REGAL HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and REGAL HOTEL
The main advantage of trading using opposite Apple and REGAL HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, REGAL HOTEL 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 REGAL HOTEL will offset losses from the drop in REGAL HOTEL's long position.| Apple vs. PEPTONIC MEDICAL | Apple vs. SMA Solar Technology | Apple vs. AECOM TECHNOLOGY | Apple vs. Medical Properties Trust |
| REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc | REGAL HOTEL 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |