Correlation Between Apple and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both Apple and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and OAKTRSPECLENDNEW, you can compare the effects of market volatilities on Apple and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and OAKTRSPECLENDNEW.
Diversification Opportunities for Apple and OAKTRSPECLENDNEW
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apple and OAKTRSPECLENDNEW is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of Apple i.e., Apple and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between Apple and OAKTRSPECLENDNEW
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.96 times more return on investment than OAKTRSPECLENDNEW. However, Apple Inc is 1.04 times less risky than OAKTRSPECLENDNEW. It trades about 0.08 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about 0.0 per unit of risk. If you would invest 13,299 in Apple Inc on August 29, 2024 and sell it today you would earn a total of 8,906 from holding Apple Inc or generate 66.97% 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. OAKTRSPECLENDNEW
Performance |
| Timeline |
| Apple Inc |
| OAKTRSPECLENDNEW |
Apple and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and OAKTRSPECLENDNEW
The main advantage of trading using opposite Apple and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.The idea behind Apple Inc and OAKTRSPECLENDNEW pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW vs. Apple Inc | OAKTRSPECLENDNEW 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |