Correlation Between Apple and FARM 51
Can any of the company-specific risk be diversified away by investing in both Apple and FARM 51 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 FARM 51 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and FARM 51 GROUP, you can compare the effects of market volatilities on Apple and FARM 51 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 FARM 51. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and FARM 51.
Diversification Opportunities for Apple and FARM 51
Excellent diversification
The 3 months correlation between Apple and FARM is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and FARM 51 GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FARM 51 GROUP 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 FARM 51. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FARM 51 GROUP has no effect on the direction of Apple i.e., Apple and FARM 51 go up and down completely randomly.
Pair Corralation between Apple and FARM 51
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.44 times more return on investment than FARM 51. However, Apple Inc is 2.27 times less risky than FARM 51. It trades about 0.12 of its potential returns per unit of risk. FARM 51 GROUP is currently generating about 0.0 per unit of risk. If you would invest 20,066 in Apple Inc on September 29, 2024 and sell it today you would earn a total of 4,299 from holding Apple Inc or generate 21.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. FARM 51 GROUP
Performance |
| Timeline |
| Apple Inc |
| FARM 51 GROUP |
Apple and FARM 51 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and FARM 51
The main advantage of trading using opposite Apple and FARM 51 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, FARM 51 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 FARM 51 will offset losses from the drop in FARM 51's long position.| Apple vs. Japan Post Insurance | Apple vs. Treasury Wine Estates | Apple vs. ITALIAN WINE BRANDS | Apple vs. VIRGIN WINES UK |
| FARM 51 vs. ABO GROUP ENVIRONMENT | FARM 51 vs. Xenia Hotels Resorts | FARM 51 vs. InterContinental Hotels Group | FARM 51 vs. Pebblebrook Hotel Trust |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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