Correlation Between Apple and HUT 8
Can any of the company-specific risk be diversified away by investing in both Apple and HUT 8 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 HUT 8 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and HUT 8 P, you can compare the effects of market volatilities on Apple and HUT 8 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 HUT 8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and HUT 8.
Diversification Opportunities for Apple and HUT 8
Pay attention - limited upside
The 3 months correlation between Apple and HUT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and HUT 8 P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUT 8 P 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 HUT 8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUT 8 P has no effect on the direction of Apple i.e., Apple and HUT 8 go up and down completely randomly.
Pair Corralation between Apple and HUT 8
Assuming the 90 days trading horizon Apple is expected to generate 17.36 times less return on investment than HUT 8. But when comparing it to its historical volatility, Apple Inc is 6.25 times less risky than HUT 8. It trades about 0.11 of its potential returns per unit of risk. HUT 8 P is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,660 in HUT 8 P on August 30, 2024 and sell it today you would earn a total of 990.00 from holding HUT 8 P or generate 59.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. HUT 8 P
Performance |
| Timeline |
| Apple Inc |
| HUT 8 P |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apple and HUT 8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and HUT 8
The main advantage of trading using opposite Apple and HUT 8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, HUT 8 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 HUT 8 will offset losses from the drop in HUT 8's long position.| Apple vs. MUTUIONLINE | Apple vs. National Retail Properties | Apple vs. Lamar Advertising | Apple vs. BOS BETTER ONLINE |
| HUT 8 vs. HYATT HOTELS A | HUT 8 vs. United Insurance Holdings | HUT 8 vs. LIFENET INSURANCE CO | HUT 8 vs. NH HOTEL GROUP |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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