Correlation Between Knowles Cor and Apple
Can any of the company-specific risk be diversified away by investing in both Knowles Cor 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 Knowles Cor and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knowles Cor and Apple Inc, you can compare the effects of market volatilities on Knowles Cor 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 Knowles Cor with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knowles Cor and Apple.
Diversification Opportunities for Knowles Cor and Apple
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Knowles and Apple is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Knowles Cor and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Knowles Cor 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 Knowles Cor 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 Knowles Cor i.e., Knowles Cor and Apple go up and down completely randomly.
Pair Corralation between Knowles Cor and Apple
Allowing for the 90-day total investment horizon Knowles Cor is expected to generate 1.69 times less return on investment than Apple. In addition to that, Knowles Cor is 1.29 times more volatile than Apple Inc. It trades about 0.08 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.18 per unit of volatility. If you would invest 16,524 in Apple Inc on September 18, 2024 and sell it today you would earn a total of 8,824 from holding Apple Inc or generate 53.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knowles Cor vs. Apple Inc
Performance |
| Timeline |
| Knowles Cor |
| Apple Inc |
Knowles Cor and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knowles Cor and Apple
The main advantage of trading using opposite Knowles Cor and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knowles Cor 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.| Knowles Cor vs. Mynaric AG ADR | Knowles Cor vs. Comtech Telecommunications Corp | Knowles Cor vs. Ituran Location and | Knowles Cor vs. Aviat Networks |
| Apple vs. Rigetti Computing | Apple vs. D Wave Quantum | Apple vs. Desktop Metal | Apple vs. Quantum Computing |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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