Correlation Between Apple and ALIOR BANK
Can any of the company-specific risk be diversified away by investing in both Apple and ALIOR BANK 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 ALIOR BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and ALIOR BANK, you can compare the effects of market volatilities on Apple and ALIOR BANK 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 ALIOR BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and ALIOR BANK.
Diversification Opportunities for Apple and ALIOR BANK
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and ALIOR is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and ALIOR BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIOR BANK 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 ALIOR BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIOR BANK has no effect on the direction of Apple i.e., Apple and ALIOR BANK go up and down completely randomly.
Pair Corralation between Apple and ALIOR BANK
Assuming the 90 days trading horizon Apple is expected to generate 1.83 times less return on investment than ALIOR BANK. But when comparing it to its historical volatility, Apple Inc is 1.84 times less risky than ALIOR BANK. It trades about 0.1 of its potential returns per unit of risk. ALIOR BANK is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 709.00 in ALIOR BANK on September 3, 2024 and sell it today you would earn a total of 1,383 from holding ALIOR BANK or generate 195.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. ALIOR BANK
Performance |
| Timeline |
| Apple Inc |
| ALIOR BANK |
Apple and ALIOR BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and ALIOR BANK
The main advantage of trading using opposite Apple and ALIOR BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, ALIOR BANK 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 ALIOR BANK will offset losses from the drop in ALIOR BANK's long position.| Apple vs. Chongqing Machinery Electric | Apple vs. ePlay Digital | Apple vs. PLAY2CHILL SA ZY | Apple vs. JD SPORTS FASH |
| ALIOR BANK vs. TOTAL GABON | ALIOR BANK vs. Walgreens Boots Alliance | ALIOR BANK vs. Peak Resources Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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