Correlation Between Apple and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both Apple and EVS Broadcast 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 EVS Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and EVS Broadcast Equipment, you can compare the effects of market volatilities on Apple and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and EVS Broadcast.
Diversification Opportunities for Apple and EVS Broadcast
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and EVS is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of Apple i.e., Apple and EVS Broadcast go up and down completely randomly.
Pair Corralation between Apple and EVS Broadcast
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.96 times more return on investment than EVS Broadcast. However, Apple Inc is 1.04 times less risky than EVS Broadcast. It trades about 0.07 of its potential returns per unit of risk. EVS Broadcast Equipment is currently generating about 0.06 per unit of risk. If you would invest 13,817 in Apple Inc on August 25, 2024 and sell it today you would earn a total of 8,248 from holding Apple Inc or generate 59.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. EVS Broadcast Equipment
Performance |
| Timeline |
| Apple Inc |
| EVS Broadcast Equipment |
Apple and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and EVS Broadcast
The main advantage of trading using opposite Apple and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.| Apple vs. HEMISPHERE EGY | Apple vs. EAGLE MATERIALS | Apple vs. Rayonier Advanced Materials | Apple vs. Ribbon Communications |
| EVS Broadcast vs. AUSTEVOLL SEAFOOD | EVS Broadcast vs. Cal Maine Foods | EVS Broadcast vs. AUSNUTRIA DAIRY | EVS Broadcast vs. Townsquare Media |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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