Correlation Between Panther Metals and Apple
Can any of the company-specific risk be diversified away by investing in both Panther Metals 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 Panther Metals and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Apple Inc, you can compare the effects of market volatilities on Panther Metals 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 Panther Metals with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Apple.
Diversification Opportunities for Panther Metals and Apple
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Panther and Apple is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Panther Metals 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 Panther Metals PLC 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 Panther Metals i.e., Panther Metals and Apple go up and down completely randomly.
Pair Corralation between Panther Metals and Apple
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 0.23 times more return on investment than Apple. However, Panther Metals PLC is 4.42 times less risky than Apple. It trades about 0.14 of its potential returns per unit of risk. Apple Inc is currently generating about -0.11 per unit of risk. If you would invest 10,000 in Panther Metals PLC on September 2, 2024 and sell it today you would earn a total of 1,500 from holding Panther Metals PLC or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panther Metals PLC vs. Apple Inc
Performance |
| Timeline |
| Panther Metals PLC |
| Apple Inc |
Panther Metals and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Apple
The main advantage of trading using opposite Panther Metals and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals 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.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Centamin PLC | Panther Metals vs. Atalaya Mining |
| Apple vs. Flow Traders NV | Apple vs. Panther Metals PLC | Apple vs. Lundin Mining Corp | Apple vs. Auto Trader Group |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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