Correlation Between Apple and STRYKER
Can any of the company-specific risk be diversified away by investing in both Apple and STRYKER 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 STRYKER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and STRYKER, you can compare the effects of market volatilities on Apple and STRYKER 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 STRYKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and STRYKER.
Diversification Opportunities for Apple and STRYKER
Excellent diversification
The 3 months correlation between Apple and STRYKER is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and STRYKER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRYKER 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 STRYKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRYKER has no effect on the direction of Apple i.e., Apple and STRYKER go up and down completely randomly.
Pair Corralation between Apple and STRYKER
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.13 times more return on investment than STRYKER. However, Apple is 1.13 times more volatile than STRYKER. It trades about 0.12 of its potential returns per unit of risk. STRYKER is currently generating about -0.01 per unit of risk. If you would invest 22,026 in Apple Inc on November 28, 2024 and sell it today you would earn a total of 854.00 from holding Apple Inc or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. STRYKER
Performance |
| Timeline |
| Apple Inc |
| STRYKER |
Apple and STRYKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and STRYKER
The main advantage of trading using opposite Apple and STRYKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, STRYKER 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 STRYKER will offset losses from the drop in STRYKER's long position.| Apple vs. Verizon Communications | Apple vs. Iridium Communications | Apple vs. T Mobile | Apple vs. ELMOS SEMICONDUCTOR |
| STRYKER vs. MAVEN WIRELESS SWEDEN | STRYKER vs. Allegheny Technologies Incorporated | STRYKER vs. Firan Technology Group | STRYKER vs. GAZTRTECHNIUADR15EO01 |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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