Correlation Between AECOM TECHNOLOGY and Apple
Can any of the company-specific risk be diversified away by investing in both AECOM TECHNOLOGY 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 AECOM TECHNOLOGY and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AECOM TECHNOLOGY and Apple Inc, you can compare the effects of market volatilities on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and Apple.
Diversification Opportunities for AECOM TECHNOLOGY and Apple
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between AECOM and Apple is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and Apple go up and down completely randomly.
Pair Corralation between AECOM TECHNOLOGY and Apple
Assuming the 90 days trading horizon AECOM TECHNOLOGY is expected to generate 1.4 times less return on investment than Apple. But when comparing it to its historical volatility, AECOM TECHNOLOGY is 1.1 times less risky than Apple. It trades about 0.07 of its potential returns per unit of risk. Apple Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 17,486 in Apple Inc on November 3, 2024 and sell it today you would earn a total of 6,384 from holding Apple Inc or generate 36.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AECOM TECHNOLOGY vs. Apple Inc
Performance |
| Timeline |
| AECOM TECHNOLOGY |
| Apple Inc |
AECOM TECHNOLOGY and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AECOM TECHNOLOGY and Apple
The main advantage of trading using opposite AECOM TECHNOLOGY and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM TECHNOLOGY 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.| AECOM TECHNOLOGY vs. MCEWEN MINING INC | AECOM TECHNOLOGY vs. MPH Health Care | AECOM TECHNOLOGY vs. MAGNUM MINING EXP | AECOM TECHNOLOGY vs. Ringmetall SE |
| Apple vs. CyberArk Software | Apple vs. TEXAS ROADHOUSE | Apple vs. Magic Software Enterprises | Apple vs. TITANIUM TRANSPORTGROUP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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