Correlation Between Apple and SUN HUNG
Can any of the company-specific risk be diversified away by investing in both Apple and SUN HUNG 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 SUN HUNG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and SUN HUNG KAI, you can compare the effects of market volatilities on Apple and SUN HUNG 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 SUN HUNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and SUN HUNG.
Diversification Opportunities for Apple and SUN HUNG
Pay attention - limited upside
The 3 months correlation between Apple and SUN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SUN HUNG KAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN HUNG KAI 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 SUN HUNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN HUNG KAI has no effect on the direction of Apple i.e., Apple and SUN HUNG go up and down completely randomly.
Pair Corralation between Apple and SUN HUNG
If you would invest 0.00 in SUN HUNG KAI on January 14, 2025 and sell it today you would earn a total of 0.00 from holding SUN HUNG KAI or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Apple Inc vs. SUN HUNG KAI
Performance |
| Timeline |
| Apple Inc |
| SUN HUNG KAI |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Apple and SUN HUNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and SUN HUNG
The main advantage of trading using opposite Apple and SUN HUNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, SUN HUNG 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 SUN HUNG will offset losses from the drop in SUN HUNG's long position.| Apple vs. Cal Maine Foods | Apple vs. EBRO FOODS | Apple vs. ANGLO ASIAN MINING | Apple vs. Yanzhou Coal Mining |
| SUN HUNG vs. GRIFFIN MINING LTD | SUN HUNG vs. Monster Beverage Corp | SUN HUNG vs. Suntory Beverage Food | SUN HUNG vs. ASSOC BR FOODS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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