Correlation Between Apple and COMBA TELECOM
Can any of the company-specific risk be diversified away by investing in both Apple and COMBA TELECOM 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 COMBA TELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and COMBA TELECOM SYST, you can compare the effects of market volatilities on Apple and COMBA TELECOM 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 COMBA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and COMBA TELECOM.
Diversification Opportunities for Apple and COMBA TELECOM
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apple and COMBA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and COMBA TELECOM SYST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMBA TELECOM SYST 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 COMBA TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMBA TELECOM SYST has no effect on the direction of Apple i.e., Apple and COMBA TELECOM go up and down completely randomly.
Pair Corralation between Apple and COMBA TELECOM
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the COMBA TELECOM. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 2.99 times less risky than COMBA TELECOM. The stock trades about -0.52 of its potential returns per unit of risk. The COMBA TELECOM SYST is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13.00 in COMBA TELECOM SYST on October 23, 2024 and sell it today you would earn a total of 0.00 from holding COMBA TELECOM SYST or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Apple Inc vs. COMBA TELECOM SYST
Performance |
| Timeline |
| Apple Inc |
| COMBA TELECOM SYST |
Apple and COMBA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and COMBA TELECOM
The main advantage of trading using opposite Apple and COMBA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, COMBA TELECOM 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 COMBA TELECOM will offset losses from the drop in COMBA TELECOM's long position.| Apple vs. THAI BEVERAGE | Apple vs. BOSTON BEER A | Apple vs. NorAm Drilling AS | Apple vs. Soken Chemical Engineering |
| COMBA TELECOM vs. Apple Inc | COMBA TELECOM vs. Apple Inc | COMBA TELECOM vs. Apple Inc | COMBA TELECOM vs. Apple Inc |
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.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |