Correlation Between CHINA FORTUNE and Apple

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CHINA FORTUNE 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 CHINA FORTUNE and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA FORTUNE HLDGHD001 and Apple Inc, you can compare the effects of market volatilities on CHINA FORTUNE 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 CHINA FORTUNE with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA FORTUNE and Apple.

Diversification Opportunities for CHINA FORTUNE and Apple

0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between CHINA and Apple is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CHINA FORTUNE HLDGHD001 and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and CHINA FORTUNE 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 CHINA FORTUNE HLDGHD001 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 CHINA FORTUNE i.e., CHINA FORTUNE and Apple go up and down completely randomly.

Pair Corralation between CHINA FORTUNE and Apple

Assuming the 90 days trading horizon CHINA FORTUNE HLDGHD001 is expected to generate 58.87 times more return on investment than Apple. However, CHINA FORTUNE is 58.87 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 0.08 per unit of risk. If you would invest  2.30  in CHINA FORTUNE HLDGHD001 on November 28, 2024 and sell it today you would lose (0.60) from holding CHINA FORTUNE HLDGHD001 or give up 26.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

CHINA FORTUNE HLDGHD001  vs.  Apple Inc

 Performance 
       Timeline  
CHINA FORTUNE HLDGHD001 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CHINA FORTUNE HLDGHD001 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CHINA FORTUNE reported solid returns over the last few months and may actually be approaching a breakup point.
Apple Inc 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in March 2025.

CHINA FORTUNE and Apple Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CHINA FORTUNE and Apple

The main advantage of trading using opposite CHINA FORTUNE and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA FORTUNE 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.
CHINA FORTUNE vs. Apple Inc
CHINA FORTUNE vs. Apple Inc
CHINA FORTUNE vs. Samsung Electronics Co
CHINA FORTUNE vs. Samsung Electronics Co
The idea behind CHINA FORTUNE HLDGHD001 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. Amazon Inc
Apple vs. Microsoft
Apple vs. Tesla Inc
Apple vs. Alphabet Class A
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Share Portfolio
Track or share privately all of your investments from the convenience of any device


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY