Correlation Between KWG Group and Apple
Can any of the company-specific risk be diversified away by investing in both KWG Group 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 KWG Group and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KWG Group Holdings and Apple Inc, you can compare the effects of market volatilities on KWG Group 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 KWG Group with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of KWG Group and Apple.
Diversification Opportunities for KWG Group and Apple
Pay attention - limited upside
The 3 months correlation between KWG and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KWG Group Holdings and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and KWG Group 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 KWG Group Holdings 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 KWG Group i.e., KWG Group and Apple go up and down completely randomly.
Pair Corralation between KWG Group and Apple
If you would invest 22,423 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 2,503 from holding Apple Inc or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KWG Group Holdings vs. Apple Inc
Performance |
| Timeline |
| KWG Group Holdings |
| Apple Inc |
KWG Group and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KWG Group and Apple
The main advantage of trading using opposite KWG Group and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KWG Group 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.| KWG Group vs. Datadog | KWG Group vs. CDW Corp | KWG Group vs. Lindblad Expeditions Holdings | KWG Group vs. Verra Mobility Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |