Correlation Between APPLE and Weibo Corp
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By analyzing existing cross correlation between APPLE INC and Weibo Corp, you can compare the effects of market volatilities on APPLE and Weibo Corp 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 APPLE with a short position of Weibo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of APPLE and Weibo Corp.
Diversification Opportunities for APPLE and Weibo Corp
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between APPLE and Weibo is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding APPLE INC and Weibo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weibo Corp and APPLE 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 APPLE INC are associated (or correlated) with Weibo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weibo Corp has no effect on the direction of APPLE i.e., APPLE and Weibo Corp go up and down completely randomly.
Pair Corralation between APPLE and Weibo Corp
Assuming the 90 days trading horizon APPLE INC is expected to generate 0.42 times more return on investment than Weibo Corp. However, APPLE INC is 2.4 times less risky than Weibo Corp. It trades about -0.07 of its potential returns per unit of risk. Weibo Corp is currently generating about -0.1 per unit of risk. If you would invest 6,150 in APPLE INC on August 27, 2024 and sell it today you would lose (124.00) from holding APPLE INC or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APPLE INC vs. Weibo Corp
Performance |
| Timeline |
| APPLE INC |
| Weibo Corp |
APPLE and Weibo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APPLE and Weibo Corp
The main advantage of trading using opposite APPLE and Weibo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APPLE position performs unexpectedly, Weibo Corp 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 Weibo Corp will offset losses from the drop in Weibo Corp's long position.| APPLE vs. National Beverage Corp | APPLE vs. Sligro Food Group | APPLE vs. Marfrig Global Foods | APPLE vs. Zijin Mining Group |
| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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