Correlation Between SPECTRAL MEDICAL and Apple
Can any of the company-specific risk be diversified away by investing in both SPECTRAL MEDICAL 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 SPECTRAL MEDICAL and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPECTRAL MEDICAL and Apple Inc, you can compare the effects of market volatilities on SPECTRAL MEDICAL 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 SPECTRAL MEDICAL with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPECTRAL MEDICAL and Apple.
Diversification Opportunities for SPECTRAL MEDICAL and Apple
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPECTRAL and Apple is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding SPECTRAL MEDICAL and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL 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 SPECTRAL MEDICAL i.e., SPECTRAL MEDICAL and Apple go up and down completely randomly.
Pair Corralation between SPECTRAL MEDICAL and Apple
Assuming the 90 days horizon SPECTRAL MEDICAL is expected to generate 3.67 times more return on investment than Apple. However, SPECTRAL MEDICAL is 3.67 times more volatile than Apple Inc. It trades about 0.04 of its potential returns per unit of risk. Apple Inc is currently generating about 0.1 per unit of risk. If you would invest 25.00 in SPECTRAL MEDICAL on October 11, 2024 and sell it today you would earn a total of 11.00 from holding SPECTRAL MEDICAL or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPECTRAL MEDICAL vs. Apple Inc
Performance |
| Timeline |
| SPECTRAL MEDICAL |
| Apple Inc |
SPECTRAL MEDICAL and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPECTRAL MEDICAL and Apple
The main advantage of trading using opposite SPECTRAL MEDICAL and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPECTRAL MEDICAL 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.| SPECTRAL MEDICAL vs. Aluminum of | SPECTRAL MEDICAL vs. KENEDIX OFFICE INV | SPECTRAL MEDICAL vs. Harmony Gold Mining | SPECTRAL MEDICAL vs. ADRIATIC METALS LS 013355 |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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