Correlation Between MainStreet Financial and Apple
Can any of the company-specific risk be diversified away by investing in both MainStreet Financial 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 MainStreet Financial and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MainStreet Financial and Apple Inc, you can compare the effects of market volatilities on MainStreet Financial 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 MainStreet Financial with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of MainStreet Financial and Apple.
Diversification Opportunities for MainStreet Financial and Apple
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MainStreet and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MainStreet Financial and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and MainStreet Financial 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 MainStreet Financial 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 MainStreet Financial i.e., MainStreet Financial and Apple go up and down completely randomly.
Pair Corralation between MainStreet Financial and Apple
If you would invest 22,961 in Apple Inc on November 28, 2024 and sell it today you would earn a total of 1,075 from holding Apple Inc or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MainStreet Financial vs. Apple Inc
Performance |
| Timeline |
| MainStreet Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Apple Inc |
MainStreet Financial and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MainStreet Financial and Apple
The main advantage of trading using opposite MainStreet Financial and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MainStreet Financial 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.| MainStreet Financial vs. Western Alliance Bancorporation | MainStreet Financial vs. Zions Bancorporation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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