Correlation Between Apple and YOMA STRATEGIC
Can any of the company-specific risk be diversified away by investing in both Apple and YOMA STRATEGIC 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 YOMA STRATEGIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and YOMA STRATEGIC HLDG, you can compare the effects of market volatilities on Apple and YOMA STRATEGIC 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 YOMA STRATEGIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and YOMA STRATEGIC.
Diversification Opportunities for Apple and YOMA STRATEGIC
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and YOMA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and YOMA STRATEGIC HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YOMA STRATEGIC HLDG 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 YOMA STRATEGIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YOMA STRATEGIC HLDG has no effect on the direction of Apple i.e., Apple and YOMA STRATEGIC go up and down completely randomly.
Pair Corralation between Apple and YOMA STRATEGIC
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.24 times more return on investment than YOMA STRATEGIC. However, Apple Inc is 4.13 times less risky than YOMA STRATEGIC. It trades about 0.13 of its potential returns per unit of risk. YOMA STRATEGIC HLDG is currently generating about -0.02 per unit of risk. If you would invest 19,452 in Apple Inc on September 19, 2024 and sell it today you would earn a total of 4,698 from holding Apple Inc or generate 24.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Apple Inc vs. YOMA STRATEGIC HLDG
Performance |
| Timeline |
| Apple Inc |
| YOMA STRATEGIC HLDG |
Apple and YOMA STRATEGIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and YOMA STRATEGIC
The main advantage of trading using opposite Apple and YOMA STRATEGIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, YOMA STRATEGIC 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 YOMA STRATEGIC will offset losses from the drop in YOMA STRATEGIC's long position.The idea behind Apple Inc and YOMA STRATEGIC HLDG 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.| YOMA STRATEGIC vs. Solstad Offshore ASA | YOMA STRATEGIC vs. INTER CARS SA | YOMA STRATEGIC vs. Commercial Vehicle Group | YOMA STRATEGIC vs. Geely Automobile Holdings |
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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