Correlation Between Apple and UNIV HEALTH
Can any of the company-specific risk be diversified away by investing in both Apple and UNIV HEALTH 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 UNIV HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and UNIV HEALTH SERV B, you can compare the effects of market volatilities on Apple and UNIV HEALTH 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 UNIV HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and UNIV HEALTH.
Diversification Opportunities for Apple and UNIV HEALTH
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and UNIV is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and UNIV HEALTH SERV B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIV HEALTH SERV 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 UNIV HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIV HEALTH SERV has no effect on the direction of Apple i.e., Apple and UNIV HEALTH go up and down completely randomly.
Pair Corralation between Apple and UNIV HEALTH
Assuming the 90 days trading horizon Apple is expected to generate 1.2 times less return on investment than UNIV HEALTH. But when comparing it to its historical volatility, Apple Inc is 1.45 times less risky than UNIV HEALTH. It trades about 0.11 of its potential returns per unit of risk. UNIV HEALTH SERV B is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 18,900 in UNIV HEALTH SERV B on August 30, 2024 and sell it today you would earn a total of 700.00 from holding UNIV HEALTH SERV B or generate 3.7% 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. UNIV HEALTH SERV B
Performance |
| Timeline |
| Apple Inc |
| UNIV HEALTH SERV |
Apple and UNIV HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and UNIV HEALTH
The main advantage of trading using opposite Apple and UNIV HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, UNIV HEALTH 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 UNIV HEALTH will offset losses from the drop in UNIV HEALTH's long position.| Apple vs. Marie Brizard Wine | Apple vs. NAKED WINES PLC | Apple vs. PKSHA TECHNOLOGY INC | Apple vs. ACCSYS TECHPLC EO |
| UNIV HEALTH vs. SPARTAN STORES | UNIV HEALTH vs. Evolution Mining Limited | UNIV HEALTH vs. Retail Estates NV | UNIV HEALTH vs. BJs Wholesale Club |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |