Correlation Between Pembina Pipeline and Apple
Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline 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 Pembina Pipeline and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembina Pipeline Corp and Apple Inc, you can compare the effects of market volatilities on Pembina Pipeline 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 Pembina Pipeline with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and Apple.
Diversification Opportunities for Pembina Pipeline and Apple
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pembina and Apple is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Pembina Pipeline 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 Pembina Pipeline Corp 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 Pembina Pipeline i.e., Pembina Pipeline and Apple go up and down completely randomly.
Pair Corralation between Pembina Pipeline and Apple
Assuming the 90 days horizon Pembina Pipeline Corp is expected to generate 0.9 times more return on investment than Apple. However, Pembina Pipeline Corp is 1.11 times less risky than Apple. It trades about -0.03 of its potential returns per unit of risk. Apple Inc is currently generating about -0.1 per unit of risk. If you would invest 3,577 in Pembina Pipeline Corp on December 6, 2024 and sell it today you would lose (81.00) from holding Pembina Pipeline Corp or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembina Pipeline Corp vs. Apple Inc
Performance |
| Timeline |
| Pembina Pipeline Corp |
| Apple Inc |
Pembina Pipeline and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembina Pipeline and Apple
The main advantage of trading using opposite Pembina Pipeline and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline 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.| Pembina Pipeline vs. Yuexiu Transport Infrastructure | Pembina Pipeline vs. Ming Le Sports | Pembina Pipeline vs. Transport International Holdings | Pembina Pipeline vs. SPORTING |
| Apple vs. Guidewire Software | Apple vs. Axway Software SA | Apple vs. Silicon Motion Technology | Apple vs. CHEMICAL INDUSTRIES |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |