Correlation Between GLOBUS MEDICAL-A and Apple
Can any of the company-specific risk be diversified away by investing in both GLOBUS MEDICAL-A 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 GLOBUS MEDICAL-A and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBUS MEDICAL A and Apple Inc, you can compare the effects of market volatilities on GLOBUS MEDICAL-A 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 GLOBUS MEDICAL-A with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBUS MEDICAL-A and Apple.
Diversification Opportunities for GLOBUS MEDICAL-A and Apple
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GLOBUS and Apple is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding GLOBUS MEDICAL A and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and GLOBUS MEDICAL-A 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 GLOBUS MEDICAL A 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 GLOBUS MEDICAL-A i.e., GLOBUS MEDICAL-A and Apple go up and down completely randomly.
Pair Corralation between GLOBUS MEDICAL-A and Apple
Assuming the 90 days trading horizon GLOBUS MEDICAL A is expected to generate 1.6 times more return on investment than Apple. However, GLOBUS MEDICAL-A is 1.6 times more volatile than Apple Inc. It trades about 0.13 of its potential returns per unit of risk. Apple Inc is currently generating about -0.01 per unit of risk. If you would invest 7,800 in GLOBUS MEDICAL A on October 11, 2024 and sell it today you would earn a total of 250.00 from holding GLOBUS MEDICAL A or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLOBUS MEDICAL A vs. Apple Inc
Performance |
| Timeline |
| GLOBUS MEDICAL A |
| Apple Inc |
GLOBUS MEDICAL-A and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLOBUS MEDICAL-A and Apple
The main advantage of trading using opposite GLOBUS MEDICAL-A and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBUS MEDICAL-A 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.| GLOBUS MEDICAL-A vs. Materialise NV | GLOBUS MEDICAL-A vs. Martin Marietta Materials | GLOBUS MEDICAL-A vs. Air Lease | GLOBUS MEDICAL-A vs. Vulcan Materials |
| Apple vs. CVR Medical Corp | Apple vs. Western Copper and | Apple vs. GLOBUS MEDICAL A | Apple vs. SPECTRAL MEDICAL |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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