Correlation Between 00108WAF7 and APPLE
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By analyzing existing cross correlation between AEP TEX INC and APPLE INC, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and APPLE.
Diversification Opportunities for 00108WAF7 and APPLE
Significant diversification
The 3 months correlation between 00108WAF7 and APPLE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC and 00108WAF7 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 AEP TEX INC 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 00108WAF7 i.e., 00108WAF7 and APPLE go up and down completely randomly.
Pair Corralation between 00108WAF7 and APPLE
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 3.82 times more return on investment than APPLE. However, 00108WAF7 is 3.82 times more volatile than APPLE INC. It trades about 0.11 of its potential returns per unit of risk. APPLE INC is currently generating about -0.12 per unit of risk. If you would invest 7,351 in AEP TEX INC on September 2, 2024 and sell it today you would earn a total of 317.00 from holding AEP TEX INC or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
AEP TEX INC vs. APPLE INC
Performance |
| Timeline |
| AEP TEX INC |
| APPLE INC |
00108WAF7 and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and APPLE
The main advantage of trading using opposite 00108WAF7 and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.| 00108WAF7 vs. Zhihu Inc ADR | 00108WAF7 vs. Playtika Holding Corp | 00108WAF7 vs. Thor Industries | 00108WAF7 vs. Dana Inc |
| APPLE vs. National Beverage Corp | APPLE vs. Ambev SA ADR | APPLE vs. Boston Beer | APPLE vs. FiscalNote Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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