Correlation Between Apple and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both Apple and TRADEGATE 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 TRADEGATE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and TRADEGATE, you can compare the effects of market volatilities on Apple and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and TRADEGATE.
Diversification Opportunities for Apple and TRADEGATE
Very good diversification
The 3 months correlation between Apple and TRADEGATE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of Apple i.e., Apple and TRADEGATE go up and down completely randomly.
Pair Corralation between Apple and TRADEGATE
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the TRADEGATE. In addition to that, Apple is 11.48 times more volatile than TRADEGATE. It trades about -0.13 of its total potential returns per unit of risk. TRADEGATE is currently generating about 0.0 per unit of volatility. If you would invest 8,950 in TRADEGATE on November 6, 2024 and sell it today you would earn a total of 0.00 from holding TRADEGATE or generate 0.0% 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. TRADEGATE
Performance |
| Timeline |
| Apple Inc |
| TRADEGATE |
Apple and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and TRADEGATE
The main advantage of trading using opposite Apple and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.The idea behind Apple Inc and TRADEGATE 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.| TRADEGATE vs. BANK OF CHINA | TRADEGATE vs. Commonwealth Bank of | TRADEGATE vs. CHIBA BANK | TRADEGATE vs. UMC Electronics Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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