Correlation Between Apple and VODAFONE GRP
Can any of the company-specific risk be diversified away by investing in both Apple and VODAFONE GRP 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 VODAFONE GRP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and VODAFONE GRP SP, you can compare the effects of market volatilities on Apple and VODAFONE GRP 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 VODAFONE GRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and VODAFONE GRP.
Diversification Opportunities for Apple and VODAFONE GRP
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apple and VODAFONE is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and VODAFONE GRP SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VODAFONE GRP SP 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 VODAFONE GRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VODAFONE GRP SP has no effect on the direction of Apple i.e., Apple and VODAFONE GRP go up and down completely randomly.
Pair Corralation between Apple and VODAFONE GRP
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.99 times more return on investment than VODAFONE GRP. However, Apple Inc is 1.01 times less risky than VODAFONE GRP. It trades about 0.02 of its potential returns per unit of risk. VODAFONE GRP SP is currently generating about 0.01 per unit of risk. If you would invest 16,348 in Apple Inc on January 23, 2025 and sell it today you would earn a total of 1,036 from holding Apple Inc or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Apple Inc vs. VODAFONE GRP SP
Performance |
| Timeline |
| Apple Inc |
| VODAFONE GRP SP |
Apple and VODAFONE GRP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and VODAFONE GRP
The main advantage of trading using opposite Apple and VODAFONE GRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, VODAFONE GRP 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 VODAFONE GRP will offset losses from the drop in VODAFONE GRP's long position.| Apple vs. Aristocrat Leisure Limited | Apple vs. Cars Inc | Apple vs. INTER CARS SA | Apple vs. Ming Le Sports |
| VODAFONE GRP vs. APPLIED MATERIALS | VODAFONE GRP vs. FRACTAL GAMING GROUP | VODAFONE GRP vs. Goodyear Tire Rubber | VODAFONE GRP vs. MOVIE GAMES SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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