Correlation Between Apple and MQGAU

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

By analyzing existing cross correlation between Apple Inc and MQGAU 39 15 JAN 26, you can compare the effects of market volatilities on Apple and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and MQGAU.

Diversification Opportunities for Apple and MQGAU

-0.48

Correlation Coefficient

Apple  MQGAU

Very good diversification

The 3 months correlation between Apple and MQGAU is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and MQGAU 39 15 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 15 JAN 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 15 JAN has no effect on the direction of Apple i.e., Apple and MQGAU go up and down completely randomly.

Pair Corralation between Apple and MQGAU

Given the investment horizon of 90 days Apple Inc is expected to under-perform the MQGAU. In addition to that, Apple is 1.7 times more volatile than MQGAU 39 15 JAN 26. It trades about -0.14 of its total potential returns per unit of risk. MQGAU 39 15 JAN 26 is currently generating about 0.02 per unit of volatility. If you would invest  9,790  in MQGAU 39 15 JAN 26 on December 22, 2024 and sell it today you would earn a total of  25.00  from holding MQGAU 39 15 JAN 26 or generate 0.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	30.0%
Values	Daily Returns

Apple Inc  vs.  MQGAU 39 15 JAN 26

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

MQGAU 15 JAN

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MQGAU 39 15 JAN 26 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MQGAU is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Apple and MQGAU

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

The idea behind Apple Inc and MQGAU 39 15 JAN 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.