Correlation Between GLATFELTER and Apple
Can any of the company-specific risk be diversified away by investing in both GLATFELTER 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 GLATFELTER and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLATFELTER and Apple Inc, you can compare the effects of market volatilities on GLATFELTER 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 GLATFELTER with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLATFELTER and Apple.
Diversification Opportunities for GLATFELTER and Apple
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GLATFELTER and Apple is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GLATFELTER and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and GLATFELTER 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 GLATFELTER 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 GLATFELTER i.e., GLATFELTER and Apple go up and down completely randomly.
Pair Corralation between GLATFELTER and Apple
Assuming the 90 days trading horizon GLATFELTER is expected to generate 0.9 times more return on investment than Apple. However, GLATFELTER is 1.11 times less risky than Apple. It trades about 0.14 of its potential returns per unit of risk. Apple Inc is currently generating about -0.33 per unit of risk. If you would invest 1,720 in GLATFELTER on October 20, 2024 and sell it today you would earn a total of 20.00 from holding GLATFELTER or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 38.89% |
| Values | Daily Returns |
GLATFELTER vs. Apple Inc
Performance |
| Timeline |
| GLATFELTER |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Apple Inc |
GLATFELTER and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLATFELTER and Apple
The main advantage of trading using opposite GLATFELTER and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLATFELTER 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.| GLATFELTER vs. Ribbon Communications | GLATFELTER vs. Cairo Communication SpA | GLATFELTER vs. Commercial Vehicle Group | GLATFELTER vs. Zoom Video Communications |
| Apple vs. SLR Investment Corp | Apple vs. ALBIS LEASING AG | Apple vs. AGNC INVESTMENT | Apple vs. PennantPark Investment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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