Correlation Between RETAIL FOOD and Apple
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD 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 RETAIL FOOD and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Apple Inc, you can compare the effects of market volatilities on RETAIL FOOD 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 RETAIL FOOD with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Apple.
Diversification Opportunities for RETAIL FOOD and Apple
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between RETAIL and Apple is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and RETAIL FOOD 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 RETAIL FOOD GROUP 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 RETAIL FOOD i.e., RETAIL FOOD and Apple go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Apple
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the Apple. In addition to that, RETAIL FOOD is 23.58 times more volatile than Apple Inc. It trades about -0.23 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.61 per unit of volatility. If you would invest 21,135 in Apple Inc on September 13, 2024 and sell it today you would earn a total of 2,640 from holding Apple Inc or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Apple Inc
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Apple Inc |
RETAIL FOOD and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Apple
The main advantage of trading using opposite RETAIL FOOD and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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.| RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc | RETAIL FOOD vs. Apple Inc |
| Apple vs. Perma Fix Environmental Services | Apple vs. MITSUBISHI STEEL MFG | Apple vs. ALGOMA STEEL GROUP | Apple vs. Aegean Airlines SA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |