Correlation Between Wilmington Capital and Apple
Can any of the company-specific risk be diversified away by investing in both Wilmington Capital 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 Wilmington Capital and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Capital Management and Apple Inc CDR, you can compare the effects of market volatilities on Wilmington Capital 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 Wilmington Capital with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Capital and Apple.
Diversification Opportunities for Wilmington Capital and Apple
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wilmington and Apple is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Capital Management and Apple Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc CDR and Wilmington Capital 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 Wilmington Capital Management 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 CDR has no effect on the direction of Wilmington Capital i.e., Wilmington Capital and Apple go up and down completely randomly.
Pair Corralation between Wilmington Capital and Apple
Assuming the 90 days trading horizon Wilmington Capital Management is expected to generate 3.14 times more return on investment than Apple. However, Wilmington Capital is 3.14 times more volatile than Apple Inc CDR. It trades about 0.03 of its potential returns per unit of risk. Apple Inc CDR is currently generating about 0.05 per unit of risk. If you would invest 231.00 in Wilmington Capital Management on September 2, 2024 and sell it today you would earn a total of 19.00 from holding Wilmington Capital Management or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Capital Management vs. Apple Inc CDR
Performance |
| Timeline |
| Wilmington Capital |
| Apple Inc CDR |
Wilmington Capital and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Capital and Apple
The main advantage of trading using opposite Wilmington Capital and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Capital 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.| Wilmington Capital vs. Olympia Financial Group | Wilmington Capital vs. Economic Investment Trust | Wilmington Capital vs. Faction Investment Group | Wilmington Capital vs. Atrium Mortgage Investment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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