Correlation Between Apple and LEGAL GENERAL
Can any of the company-specific risk be diversified away by investing in both Apple and LEGAL GENERAL 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 LEGAL GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and LEGAL GENERAL, you can compare the effects of market volatilities on Apple and LEGAL GENERAL 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 LEGAL GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and LEGAL GENERAL.
Diversification Opportunities for Apple and LEGAL GENERAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and LEGAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and LEGAL GENERAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEGAL GENERAL 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 LEGAL GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEGAL GENERAL has no effect on the direction of Apple i.e., Apple and LEGAL GENERAL go up and down completely randomly.
Pair Corralation between Apple and LEGAL GENERAL
If you would invest (100.00) in LEGAL GENERAL on December 11, 2024 and sell it today you would earn a total of 100.00 from holding LEGAL GENERAL or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Apple Inc vs. LEGAL GENERAL
Performance |
| Timeline |
| Apple Inc |
| LEGAL GENERAL |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Apple and LEGAL GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and LEGAL GENERAL
The main advantage of trading using opposite Apple and LEGAL GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, LEGAL GENERAL 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 LEGAL GENERAL will offset losses from the drop in LEGAL GENERAL's long position.| Apple vs. TYSNES SPAREBANK NK | Apple vs. BANKINTER ADR 2007 | Apple vs. REVO INSURANCE SPA | Apple vs. Varengold Bank AG |
| LEGAL GENERAL vs. SEKISUI CHEMICAL | LEGAL GENERAL vs. New Residential Investment | LEGAL GENERAL vs. Scottish Mortgage Investment | LEGAL GENERAL vs. TRI CHEMICAL LABORATINC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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