Correlation Between EAGLE MATERIALS and Apple
Can any of the company-specific risk be diversified away by investing in both EAGLE MATERIALS 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 EAGLE MATERIALS and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAGLE MATERIALS and Apple Inc, you can compare the effects of market volatilities on EAGLE MATERIALS 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 EAGLE MATERIALS with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAGLE MATERIALS and Apple.
Diversification Opportunities for EAGLE MATERIALS and Apple
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EAGLE and Apple is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding EAGLE MATERIALS and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and EAGLE MATERIALS 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 EAGLE MATERIALS 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 EAGLE MATERIALS i.e., EAGLE MATERIALS and Apple go up and down completely randomly.
Pair Corralation between EAGLE MATERIALS and Apple
Assuming the 90 days trading horizon EAGLE MATERIALS is expected to generate 1.39 times more return on investment than Apple. However, EAGLE MATERIALS is 1.39 times more volatile than Apple Inc. It trades about 0.1 of its potential returns per unit of risk. Apple Inc is currently generating about 0.07 per unit of risk. If you would invest 14,486 in EAGLE MATERIALS on August 29, 2024 and sell it today you would earn a total of 15,114 from holding EAGLE MATERIALS or generate 104.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAGLE MATERIALS vs. Apple Inc
Performance |
| Timeline |
| EAGLE MATERIALS |
| Apple Inc |
EAGLE MATERIALS and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAGLE MATERIALS and Apple
The main advantage of trading using opposite EAGLE MATERIALS and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAGLE MATERIALS 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.| EAGLE MATERIALS vs. Tianjin Capital Environmental | EAGLE MATERIALS vs. SOLSTAD OFFSHORE NK | EAGLE MATERIALS vs. Lion One Metals | EAGLE MATERIALS vs. LEGACY IRON ORE |
| Apple vs. Public Storage | Apple vs. KENEDIX OFFICE INV | Apple vs. DOCDATA | Apple vs. Information Services International Dentsu |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |