Correlation Between Apple and HIMARK

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

By analyzing existing cross correlation between Apple Inc and HIMARK 145 10 MAY 26, you can compare the effects of market volatilities on Apple and HIMARK 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 HIMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and HIMARK.

Diversification Opportunities for Apple and HIMARK

0.79

Correlation Coefficient

Apple  HIMARK

Poor diversification

The 3 months correlation between Apple and HIMARK is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and HIMARK 145 10 MAY 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIMARK 145 10 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 HIMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIMARK 145 10 has no effect on the direction of Apple i.e., Apple and HIMARK go up and down completely randomly.

Pair Corralation between Apple and HIMARK

Given the investment horizon of 90 days Apple Inc is expected to generate 2.16 times more return on investment than HIMARK. However, Apple is 2.16 times more volatile than HIMARK 145 10 MAY 26. It trades about 0.09 of its potential returns per unit of risk. HIMARK 145 10 MAY 26 is currently generating about 0.03 per unit of risk. If you would invest  13,644  in Apple Inc on October 11, 2024 and sell it today you would earn a total of  10,626  from holding Apple Inc or generate 77.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	24.6%
Values	Daily Returns

Apple Inc  vs.  HIMARK 145 10 MAY 26

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.

HIMARK 145 10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HIMARK 145 10 MAY 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for HIMARK 145 10 MAY 26 investors.

Pair Trading with Apple and HIMARK

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

The idea behind Apple Inc and HIMARK 145 10 MAY 26 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.