Correlation Between Apple and MINEBEA
Can any of the company-specific risk be diversified away by investing in both Apple and MINEBEA 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 MINEBEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and MINEBEA, you can compare the effects of market volatilities on Apple and MINEBEA 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 MINEBEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and MINEBEA.
Diversification Opportunities for Apple and MINEBEA
Excellent diversification
The 3 months correlation between Apple and MINEBEA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and MINEBEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINEBEA 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 MINEBEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINEBEA has no effect on the direction of Apple i.e., Apple and MINEBEA go up and down completely randomly.
Pair Corralation between Apple and MINEBEA
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.56 times more return on investment than MINEBEA. However, Apple Inc is 1.8 times less risky than MINEBEA. It trades about 0.13 of its potential returns per unit of risk. MINEBEA is currently generating about -0.03 per unit of risk. If you would invest 17,989 in Apple Inc on September 3, 2024 and sell it today you would earn a total of 4,896 from holding Apple Inc or generate 27.22% 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. MINEBEA
Performance |
| Timeline |
| Apple Inc |
| MINEBEA |
Apple and MINEBEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and MINEBEA
The main advantage of trading using opposite Apple and MINEBEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, MINEBEA 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 MINEBEA will offset losses from the drop in MINEBEA's long position.| Apple vs. Perseus Mining Limited | Apple vs. Citic Telecom International | Apple vs. Consolidated Communications Holdings | Apple vs. Entravision Communications |
| MINEBEA vs. Nordic Semiconductor ASA | MINEBEA vs. Tower Semiconductor | MINEBEA vs. Selective Insurance Group | MINEBEA vs. Lendlease Group |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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