Correlation Between NEWELL RUBBERMAID and Apple
Can any of the company-specific risk be diversified away by investing in both NEWELL RUBBERMAID 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 NEWELL RUBBERMAID and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEWELL RUBBERMAID and Apple Inc, you can compare the effects of market volatilities on NEWELL RUBBERMAID 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 NEWELL RUBBERMAID with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and Apple.
Diversification Opportunities for NEWELL RUBBERMAID and Apple
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NEWELL and Apple is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and Apple go up and down completely randomly.
Pair Corralation between NEWELL RUBBERMAID and Apple
Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to generate 1.01 times less return on investment than Apple. In addition to that, NEWELL RUBBERMAID is 2.3 times more volatile than Apple Inc. It trades about 0.21 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.5 per unit of volatility. If you would invest 20,331 in Apple Inc on September 1, 2024 and sell it today you would earn a total of 2,104 from holding Apple Inc or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEWELL RUBBERMAID vs. Apple Inc
Performance |
| Timeline |
| NEWELL RUBBERMAID |
| Apple Inc |
NEWELL RUBBERMAID and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWELL RUBBERMAID and Apple
The main advantage of trading using opposite NEWELL RUBBERMAID and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWELL RUBBERMAID 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.| NEWELL RUBBERMAID vs. Universal Insurance Holdings | NEWELL RUBBERMAID vs. THORNEY TECHS LTD | NEWELL RUBBERMAID vs. ACCSYS TECHPLC EO | NEWELL RUBBERMAID vs. SOFI TECHNOLOGIES |
| Apple vs. CyberArk Software | Apple vs. GEAR4MUSIC LS 10 | Apple vs. GAMESTOP | Apple vs. FORMPIPE SOFTWARE AB |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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