Correlation Between Apple and MINING PROJECTS
Can any of the company-specific risk be diversified away by investing in both Apple and MINING PROJECTS 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 MINING PROJECTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and MINING PROJECTS GRP, you can compare the effects of market volatilities on Apple and MINING PROJECTS 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 MINING PROJECTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and MINING PROJECTS.
Diversification Opportunities for Apple and MINING PROJECTS
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apple and MINING is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and MINING PROJECTS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINING PROJECTS GRP 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 MINING PROJECTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINING PROJECTS GRP has no effect on the direction of Apple i.e., Apple and MINING PROJECTS go up and down completely randomly.
Pair Corralation between Apple and MINING PROJECTS
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.43 times more return on investment than MINING PROJECTS. However, Apple Inc is 2.33 times less risky than MINING PROJECTS. It trades about 0.12 of its potential returns per unit of risk. MINING PROJECTS GRP is currently generating about -0.22 per unit of risk. If you would invest 21,325 in Apple Inc on August 24, 2024 and sell it today you would earn a total of 750.00 from holding Apple Inc or generate 3.52% 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. MINING PROJECTS GRP
Performance |
| Timeline |
| Apple Inc |
| MINING PROJECTS GRP |
Apple and MINING PROJECTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and MINING PROJECTS
The main advantage of trading using opposite Apple and MINING PROJECTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, MINING PROJECTS 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 MINING PROJECTS will offset losses from the drop in MINING PROJECTS's long position.| Apple vs. FUYO GENERAL LEASE | Apple vs. United Rentals | Apple vs. Qurate Retail Series | Apple vs. National Retail Properties |
| MINING PROJECTS vs. BURLINGTON STORES | MINING PROJECTS vs. GameStop Corp | MINING PROJECTS vs. Retail Estates NV | MINING PROJECTS vs. GigaMedia |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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