Correlation Between TRADEDOUBLER and Apple
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER 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 TRADEDOUBLER and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and Apple Inc, you can compare the effects of market volatilities on TRADEDOUBLER 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 TRADEDOUBLER with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and Apple.
Diversification Opportunities for TRADEDOUBLER and Apple
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between TRADEDOUBLER and Apple is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and TRADEDOUBLER 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 TRADEDOUBLER AB SK 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 TRADEDOUBLER i.e., TRADEDOUBLER and Apple go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and Apple
Assuming the 90 days horizon TRADEDOUBLER is expected to generate 2.81 times less return on investment than Apple. In addition to that, TRADEDOUBLER is 2.52 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 0.08 per unit of volatility. If you would invest 13,443 in Apple Inc on September 3, 2024 and sell it today you would earn a total of 8,992 from holding Apple Inc or generate 66.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. Apple Inc
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| Apple Inc |
TRADEDOUBLER and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and Apple
The main advantage of trading using opposite TRADEDOUBLER and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER 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.| TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. NMI Holdings | TRADEDOUBLER vs. Origin Agritech | TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB |
| Apple vs. TRADEDOUBLER AB SK | Apple vs. MARKET VECTR RETAIL | Apple vs. CANON MARKETING JP | Apple vs. Salesforce |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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