Correlation Between Apple and Apyx Medical
Can any of the company-specific risk be diversified away by investing in both Apple and Apyx 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 Apyx 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 Apyx Medical Corp, you can compare the effects of market volatilities on Apple and Apyx 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 Apyx Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Apyx Medical.
Diversification Opportunities for Apple and Apyx Medical
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apple and Apyx is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Apyx Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apyx Medical Corp 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 Apyx Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apyx Medical Corp has no effect on the direction of Apple i.e., Apple and Apyx Medical go up and down completely randomly.
Pair Corralation between Apple and Apyx Medical
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.23 times more return on investment than Apyx Medical. However, Apple Inc is 4.4 times less risky than Apyx Medical. It trades about 0.09 of its potential returns per unit of risk. Apyx Medical Corp is currently generating about 0.0 per unit of risk. If you would invest 15,851 in Apple Inc on August 26, 2024 and sell it today you would earn a total of 6,214 from holding Apple Inc or generate 39.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Apyx Medical Corp
Performance |
| Timeline |
| Apple Inc |
| Apyx Medical Corp |
Apple and Apyx Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Apyx Medical
The main advantage of trading using opposite Apple and Apyx Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Apyx 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 Apyx Medical will offset losses from the drop in Apyx Medical's long position.| Apple vs. HEMISPHERE EGY | Apple vs. EAGLE MATERIALS | Apple vs. Rayonier Advanced Materials | Apple vs. Ribbon Communications |
| Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx Medical vs. Apple Inc | Apyx 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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