Correlation Between Apple and Quebecor

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

Diversification Opportunities for Apple and Quebecor

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Apple and Quebecor is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Apple i.e., Apple and Quebecor go up and down completely randomly.

Pair Corralation between Apple and Quebecor

Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.97 times more return on investment than Quebecor. However, Apple Inc CDR is 1.03 times less risky than Quebecor. It trades about 0.11 of its potential returns per unit of risk. Quebecor is currently generating about -0.15 per unit of risk. If you would invest  3,313  in Apple Inc CDR on October 8, 2024 and sell it today you would earn a total of  250.00  from holding Apple Inc CDR or generate 7.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Apple Inc CDR  vs.  Quebecor

 Performance 
       Timeline  
Apple Inc CDR 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc CDR are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in February 2025.
Quebecor 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Quebecor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Apple and Quebecor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and Quebecor

The main advantage of trading using opposite Apple and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.
The idea behind Apple Inc CDR and Quebecor 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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