Correlation Between Parkson Retail and Apple
Can any of the company-specific risk be diversified away by investing in both Parkson Retail 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 Parkson Retail and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Parkson Retail Group and Apple Inc, you can compare the effects of market volatilities on Parkson Retail 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 Parkson Retail with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parkson Retail and Apple.
Diversification Opportunities for Parkson Retail and Apple
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Parkson and Apple is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Parkson Retail Group and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Parkson Retail 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 Parkson Retail Group 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 Parkson Retail i.e., Parkson Retail and Apple go up and down completely randomly.
Pair Corralation between Parkson Retail and Apple
Assuming the 90 days trading horizon Parkson Retail is expected to generate 2.23 times less return on investment than Apple. In addition to that, Parkson Retail is 6.01 times more volatile than Apple Inc. It trades about 0.01 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.14 per unit of volatility. If you would invest 21,489 in Apple Inc on August 29, 2024 and sell it today you would earn a total of 921.00 from holding Apple Inc or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Parkson Retail Group vs. Apple Inc
Performance |
| Timeline |
| Parkson Retail Group |
| Apple Inc |
Parkson Retail and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parkson Retail and Apple
The main advantage of trading using opposite Parkson Retail and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parkson Retail 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.| Parkson Retail vs. Shoprite Holdings Limited | Parkson Retail vs. Superior Plus Corp | Parkson Retail vs. SIVERS SEMICONDUCTORS AB | Parkson Retail vs. Talanx AG |
| Apple vs. Cellnex Telecom SA | Apple vs. Spirent Communications plc | Apple vs. Ribbon Communications | Apple vs. Perseus Mining Limited |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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