Correlation Between NYSE Composite and APPLE
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By analyzing existing cross correlation between NYSE Composite and APPLE INC, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and APPLE.
Diversification Opportunities for NYSE Composite and APPLE
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and APPLE is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and APPLE go up and down completely randomly.
Pair Corralation between NYSE Composite and APPLE
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.95 times more return on investment than APPLE. However, NYSE Composite is 1.05 times less risky than APPLE. It trades about 0.29 of its potential returns per unit of risk. APPLE INC is currently generating about -0.17 per unit of risk. If you would invest 1,941,627 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 79,355 from holding NYSE Composite or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NYSE Composite vs. APPLE INC
Performance |
| Timeline |
NYSE Composite and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
APPLE INC
Pair trading matchups for APPLE
Pair Trading with NYSE Composite and APPLE
The main advantage of trading using opposite NYSE Composite and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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