Correlation Between FEMALE HEALTH and Apple
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH 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 FEMALE HEALTH and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Apple Inc, you can compare the effects of market volatilities on FEMALE HEALTH 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 FEMALE HEALTH with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Apple.
Diversification Opportunities for FEMALE HEALTH and Apple
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between FEMALE and Apple is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH i.e., FEMALE HEALTH and Apple go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Apple
Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 3.74 times more return on investment than Apple. However, FEMALE HEALTH is 3.74 times more volatile than Apple Inc. It trades about 0.28 of its potential returns per unit of risk. Apple Inc is currently generating about 0.41 per unit of risk. If you would invest 57.00 in FEMALE HEALTH on September 15, 2024 and sell it today you would earn a total of 13.00 from holding FEMALE HEALTH or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. Apple Inc
Performance |
| Timeline |
| FEMALE HEALTH |
| Apple Inc |
FEMALE HEALTH and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Apple
The main advantage of trading using opposite FEMALE HEALTH and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH 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.| FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc |
| Apple vs. FEMALE HEALTH | Apple vs. Jupiter Fund Management | Apple vs. Bausch Health Companies | Apple vs. AGF Management Limited |
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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