Correlation Between Grand Canyon and Apple
Can any of the company-specific risk be diversified away by investing in both Grand Canyon 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 Grand Canyon and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Canyon Education and Apple Inc, you can compare the effects of market volatilities on Grand Canyon 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 Grand Canyon with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canyon and Apple.
Diversification Opportunities for Grand Canyon and Apple
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grand and Apple is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canyon Education and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Grand Canyon 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 Grand Canyon Education 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 Grand Canyon i.e., Grand Canyon and Apple go up and down completely randomly.
Pair Corralation between Grand Canyon and Apple
Assuming the 90 days trading horizon Grand Canyon Education is expected to generate 0.68 times more return on investment than Apple. However, Grand Canyon Education is 1.48 times less risky than Apple. It trades about 0.3 of its potential returns per unit of risk. Apple Inc is currently generating about -0.14 per unit of risk. If you would invest 15,700 in Grand Canyon Education on November 6, 2024 and sell it today you would earn a total of 1,400 from holding Grand Canyon Education or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Canyon Education vs. Apple Inc
Performance |
| Timeline |
| Grand Canyon Education |
| Apple Inc |
Grand Canyon and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Canyon and Apple
The main advantage of trading using opposite Grand Canyon and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Canyon 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.| Grand Canyon vs. Apollo Medical Holdings | Grand Canyon vs. PEPTONIC MEDICAL | Grand Canyon vs. Meiko Electronics Co | Grand Canyon vs. Merit Medical Systems |
| Apple vs. Lifeway Foods | Apple vs. Discover Financial Services | Apple vs. CAL MAINE FOODS | Apple vs. Austevoll Seafood ASA |
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
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |