Correlation Between Apple and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both Apple and SINGAPORE POST 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 SINGAPORE POST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and SINGAPORE POST, you can compare the effects of market volatilities on Apple and SINGAPORE POST 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and SINGAPORE POST.
Diversification Opportunities for Apple and SINGAPORE POST
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apple and SINGAPORE is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of Apple i.e., Apple and SINGAPORE POST go up and down completely randomly.
Pair Corralation between Apple and SINGAPORE POST
Assuming the 90 days trading horizon Apple is expected to generate 3.95 times less return on investment than SINGAPORE POST. But when comparing it to its historical volatility, Apple Inc is 1.99 times less risky than SINGAPORE POST. It trades about 0.09 of its potential returns per unit of risk. SINGAPORE POST is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 36.00 in SINGAPORE POST on August 30, 2024 and sell it today you would earn a total of 4.00 from holding SINGAPORE POST or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. SINGAPORE POST
Performance |
| Timeline |
| Apple Inc |
| SINGAPORE POST |
Apple and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and SINGAPORE POST
The main advantage of trading using opposite Apple and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST's long position.| Apple vs. Marie Brizard Wine | Apple vs. NAKED WINES PLC | Apple vs. PKSHA TECHNOLOGY INC | Apple vs. ACCSYS TECHPLC EO |
| SINGAPORE POST vs. SYSTEMAIR AB | SINGAPORE POST vs. Air New Zealand | SINGAPORE POST vs. Pentair plc | SINGAPORE POST vs. FORWARD AIR P |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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