Correlation Between Minerals Technologies and Apple
Can any of the company-specific risk be diversified away by investing in both Minerals Technologies 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 Minerals Technologies and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minerals Technologies and Apple Inc, you can compare the effects of market volatilities on Minerals Technologies 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 Minerals Technologies with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minerals Technologies and Apple.
Diversification Opportunities for Minerals Technologies and Apple
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Minerals and Apple is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Minerals Technologies and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Minerals Technologies 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 Minerals Technologies 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 Minerals Technologies i.e., Minerals Technologies and Apple go up and down completely randomly.
Pair Corralation between Minerals Technologies and Apple
Assuming the 90 days horizon Minerals Technologies is expected to under-perform the Apple. In addition to that, Minerals Technologies is 1.03 times more volatile than Apple Inc. It trades about -0.07 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.06 per unit of volatility. If you would invest 22,135 in Apple Inc on October 25, 2024 and sell it today you would lose (755.00) from holding Apple Inc or give up 3.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minerals Technologies vs. Apple Inc
Performance |
| Timeline |
| Minerals Technologies |
| Apple Inc |
Minerals Technologies and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minerals Technologies and Apple
The main advantage of trading using opposite Minerals Technologies and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minerals Technologies 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.| Minerals Technologies vs. MagnaChip Semiconductor Corp | Minerals Technologies vs. Tower Semiconductor | Minerals Technologies vs. China Datang | Minerals Technologies vs. Elmos Semiconductor SE |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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