Correlation Between Apple and BLUERUSH Media

Can any of the company-specific risk be diversified away by investing in both Apple and BLUERUSH Media 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 Apple and BLUERUSH Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apple Inc CDR and BLUERUSH Media Group, you can compare the effects of market volatilities on Apple and BLUERUSH Media 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 BLUERUSH Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and BLUERUSH Media.

Diversification Opportunities for Apple and BLUERUSH Media

0.0

Correlation Coefficient

Apple  BLUERUSH Media

Pay attention - limited upside

The 3 months correlation between Apple and BLUERUSH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and BLUERUSH Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLUERUSH Media Group 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 CDR are associated (or correlated) with BLUERUSH Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLUERUSH Media Group has no effect on the direction of Apple i.e., Apple and BLUERUSH Media go up and down completely randomly.

Pair Corralation between Apple and BLUERUSH Media

If you would invest  3,506  in Apple Inc CDR on December 2, 2024 and sell it today you would earn a total of  6.00  from holding Apple Inc CDR or generate 0.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Apple Inc CDR  vs.  BLUERUSH Media Group

Apple Inc CDR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc CDR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Apple is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

BLUERUSH Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days BLUERUSH Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, BLUERUSH Media is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Apple and BLUERUSH Media

The main advantage of trading using opposite Apple and BLUERUSH Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, BLUERUSH Media 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 BLUERUSH Media will offset losses from the drop in BLUERUSH Media's long position.

The idea behind Apple Inc CDR and BLUERUSH Media Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.