Correlation Between Element Fleet and Apple
Can any of the company-specific risk be diversified away by investing in both Element Fleet 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 Element Fleet and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Element Fleet Management and Apple Inc CDR, you can compare the effects of market volatilities on Element Fleet 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 Element Fleet with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Element Fleet and Apple.
Diversification Opportunities for Element Fleet and Apple
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Element and Apple is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Element Fleet Management and Apple Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc CDR and Element Fleet 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 Element Fleet Management 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 CDR has no effect on the direction of Element Fleet i.e., Element Fleet and Apple go up and down completely randomly.
Pair Corralation between Element Fleet and Apple
Assuming the 90 days trading horizon Element Fleet Management is expected to generate 0.56 times more return on investment than Apple. However, Element Fleet Management is 1.79 times less risky than Apple. It trades about 0.11 of its potential returns per unit of risk. Apple Inc CDR is currently generating about -0.38 per unit of risk. If you would invest 2,895 in Element Fleet Management on October 29, 2024 and sell it today you would earn a total of 54.00 from holding Element Fleet Management or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Element Fleet Management vs. Apple Inc CDR
Performance |
| Timeline |
| Element Fleet Management |
| Apple Inc CDR |
Element Fleet and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Element Fleet and Apple
The main advantage of trading using opposite Element Fleet and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Element Fleet 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.| Element Fleet vs. ECN Capital Corp | Element Fleet vs. Martinrea International | Element Fleet vs. CCL Industries | Element Fleet vs. FirstService Corp |
| Apple vs. Sun Peak Metals | Apple vs. Cogeco Communications | Apple vs. Advent Wireless | Apple vs. North American Financial |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |