Correlation Between CONICO and Apple
Can any of the company-specific risk be diversified away by investing in both CONICO and Apple 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 CONICO and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONICO and Apple Inc, you can compare the effects of market volatilities on CONICO and Apple 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 CONICO with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONICO and Apple.
Diversification Opportunities for CONICO and Apple
Excellent diversification
The 3 months correlation between CONICO and Apple is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CONICO and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and CONICO 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 CONICO are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of CONICO i.e., CONICO and Apple go up and down completely randomly.
Pair Corralation between CONICO and Apple
If you would invest 21,380 in Apple Inc on September 14, 2024 and sell it today you would earn a total of 2,265 from holding Apple Inc or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONICO vs. Apple Inc
Performance |
| Timeline |
| CONICO |
| Apple Inc |
CONICO and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONICO and Apple
The main advantage of trading using opposite CONICO and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONICO position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.The idea behind CONICO and Apple Inc 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.| Apple vs. Spirent Communications plc | Apple vs. Evolution Mining Limited | Apple vs. CHINA TELECOM H | Apple vs. Harmony Gold Mining |
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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