Correlation Between Apple and PowerFleet,

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

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

Diversification Opportunities for Apple and PowerFleet,

0.26

Correlation Coefficient

Apple  PowerFleet,

Modest diversification

The 3 months correlation between Apple and PowerFleet, is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, 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 PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of Apple i.e., Apple and PowerFleet, go up and down completely randomly.

Pair Corralation between Apple and PowerFleet,

Given the investment horizon of 90 days Apple is expected to generate 2.4 times less return on investment than PowerFleet,. But when comparing it to its historical volatility, Apple Inc is 3.09 times less risky than PowerFleet,. It trades about 0.08 of its potential returns per unit of risk. PowerFleet, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  310.00  in PowerFleet, on December 3, 2024 and sell it today you would earn a total of  395.00  from holding PowerFleet, or generate 127.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Apple Inc  vs.  PowerFleet,

Apple Inc

Risk-Adjusted Performance

Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Apple is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

PowerFleet,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, PowerFleet, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Apple and PowerFleet,

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

The idea behind Apple Inc and PowerFleet, 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.