Correlation Between Apple and AFFLUENT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Apple and AFFLUENT MEDICAL 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 AFFLUENT MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and AFFLUENT MEDICAL SAS, you can compare the effects of market volatilities on Apple and AFFLUENT MEDICAL 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 AFFLUENT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and AFFLUENT MEDICAL.
Diversification Opportunities for Apple and AFFLUENT MEDICAL
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and AFFLUENT is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and AFFLUENT MEDICAL SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFFLUENT MEDICAL SAS 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 AFFLUENT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFFLUENT MEDICAL SAS has no effect on the direction of Apple i.e., Apple and AFFLUENT MEDICAL go up and down completely randomly.
Pair Corralation between Apple and AFFLUENT MEDICAL
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.24 times more return on investment than AFFLUENT MEDICAL. However, Apple Inc is 4.21 times less risky than AFFLUENT MEDICAL. It trades about 0.09 of its potential returns per unit of risk. AFFLUENT MEDICAL SAS is currently generating about 0.02 per unit of risk. If you would invest 12,885 in Apple Inc on October 12, 2024 and sell it today you would earn a total of 10,060 from holding Apple Inc or generate 78.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. AFFLUENT MEDICAL SAS
Performance |
| Timeline |
| Apple Inc |
| AFFLUENT MEDICAL SAS |
Apple and AFFLUENT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and AFFLUENT MEDICAL
The main advantage of trading using opposite Apple and AFFLUENT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, AFFLUENT MEDICAL 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 AFFLUENT MEDICAL will offset losses from the drop in AFFLUENT MEDICAL's long position.| Apple vs. China Datang | Apple vs. CN DATANG C | Apple vs. SILVER BULLET DATA | Apple vs. Hyrican Informationssysteme Aktiengesellschaft |
| AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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