Correlation Between Apple and PERSOL HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Apple and PERSOL HOLDINGS 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 PERSOL HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and PERSOL HOLDINGS LTD, you can compare the effects of market volatilities on Apple and PERSOL HOLDINGS 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 PERSOL HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and PERSOL HOLDINGS.
Diversification Opportunities for Apple and PERSOL HOLDINGS
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and PERSOL is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and PERSOL HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERSOL HOLDINGS LTD 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 PERSOL HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERSOL HOLDINGS LTD has no effect on the direction of Apple i.e., Apple and PERSOL HOLDINGS go up and down completely randomly.
Pair Corralation between Apple and PERSOL HOLDINGS
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.36 times more return on investment than PERSOL HOLDINGS. However, Apple Inc is 2.8 times less risky than PERSOL HOLDINGS. It trades about 0.07 of its potential returns per unit of risk. PERSOL HOLDINGS LTD is currently generating about 0.01 per unit of risk. If you would invest 17,220 in Apple Inc on August 26, 2024 and sell it today you would earn a total of 4,825 from holding Apple Inc or generate 28.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. PERSOL HOLDINGS LTD
Performance |
| Timeline |
| Apple Inc |
| PERSOL HOLDINGS LTD |
Apple and PERSOL HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and PERSOL HOLDINGS
The main advantage of trading using opposite Apple and PERSOL HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, PERSOL HOLDINGS 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 PERSOL HOLDINGS will offset losses from the drop in PERSOL HOLDINGS's long position.The idea behind Apple Inc and PERSOL HOLDINGS LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PERSOL HOLDINGS vs. Recruit Holdings Co | PERSOL HOLDINGS vs. Randstad NV | PERSOL HOLDINGS vs. Meitec | PERSOL HOLDINGS vs. STHREE PLC LS |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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