Correlation Between Apple and 15189XAY4

Can any of the company-specific risk be diversified away by investing in both Apple and 15189XAY4 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 15189XAY4 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apple Inc and CNP 36 01 MAR 52, you can compare the effects of market volatilities on Apple and 15189XAY4 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 15189XAY4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and 15189XAY4.

Diversification Opportunities for Apple and 15189XAY4

-0.55

Correlation Coefficient

Apple  15189XAY4

Excellent diversification

The 3 months correlation between Apple and 15189XAY4 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and CNP 36 01 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNP 36 01 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 15189XAY4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNP 36 01 has no effect on the direction of Apple i.e., Apple and 15189XAY4 go up and down completely randomly.

Pair Corralation between Apple and 15189XAY4

Given the investment horizon of 90 days Apple Inc is expected to generate 0.59 times more return on investment than 15189XAY4. However, Apple Inc is 1.69 times less risky than 15189XAY4. It trades about 0.1 of its potential returns per unit of risk. CNP 36 01 MAR 52 is currently generating about 0.0 per unit of risk. If you would invest  13,380  in Apple Inc on October 9, 2024 and sell it today you would earn a total of  11,120  from holding Apple Inc or generate 83.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	64.24%
Values	Daily Returns

Apple Inc  vs.  CNP 36 01 MAR 52

Apple Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CNP 36 01

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CNP 36 01 MAR 52 are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, 15189XAY4 sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and 15189XAY4

The main advantage of trading using opposite Apple and 15189XAY4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, 15189XAY4 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 15189XAY4 will offset losses from the drop in 15189XAY4's long position.

The idea behind Apple Inc and CNP 36 01 MAR 52 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.