Correlation Between Apple and Mccoy Global

Can any of the company-specific risk be diversified away by investing in both Apple and Mccoy Global 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 Mccoy Global 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 Mccoy Global, you can compare the effects of market volatilities on Apple and Mccoy Global 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 Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Mccoy Global.

Diversification Opportunities for Apple and Mccoy Global

-0.55

Correlation Coefficient

Apple  Mccoy Global

Excellent diversification

The 3 months correlation between Apple and Mccoy is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global 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 Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of Apple i.e., Apple and Mccoy Global go up and down completely randomly.

Pair Corralation between Apple and Mccoy Global

Assuming the 90 days trading horizon Apple is expected to generate 6.43 times less return on investment than Mccoy Global. But when comparing it to its historical volatility, Apple Inc CDR is 2.31 times less risky than Mccoy Global. It trades about 0.03 of its potential returns per unit of risk. Mccoy Global is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  197.00  in Mccoy Global on October 22, 2024 and sell it today you would earn a total of  67.00  from holding Mccoy Global or generate 34.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Apple Inc CDR  vs.  Mccoy Global

Apple Inc CDR

Risk-Adjusted Performance

0 of 100

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 recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Mccoy Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mccoy Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental drivers remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Apple and Mccoy Global

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

The idea behind Apple Inc CDR and Mccoy Global 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.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.