Correlation Between Apple and TNEMAK

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

By analyzing existing cross correlation between Apple Inc and TNEMAK 3625 28 JUN 31, you can compare the effects of market volatilities on Apple and TNEMAK 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 TNEMAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and TNEMAK.

Diversification Opportunities for Apple and TNEMAK

-0.05

Correlation Coefficient

Apple  TNEMAK

Good diversification

The 3 months correlation between Apple and TNEMAK is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and TNEMAK 3625 28 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNEMAK 3625 28 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 TNEMAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNEMAK 3625 28 has no effect on the direction of Apple i.e., Apple and TNEMAK go up and down completely randomly.

Pair Corralation between Apple and TNEMAK

Given the investment horizon of 90 days Apple Inc is expected to under-perform the TNEMAK. In addition to that, Apple is 2.64 times more volatile than TNEMAK 3625 28 JUN 31. It trades about -0.14 of its total potential returns per unit of risk. TNEMAK 3625 28 JUN 31 is currently generating about 0.12 per unit of volatility. If you would invest  7,810  in TNEMAK 3625 28 JUN 31 on December 22, 2024 and sell it today you would earn a total of  153.00  from holding TNEMAK 3625 28 JUN 31 or generate 1.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	40.0%
Values	Daily Returns

Apple Inc  vs.  TNEMAK 3625 28 JUN 31

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.

TNEMAK 3625 28

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TNEMAK 3625 28 JUN 31 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, TNEMAK is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Apple and TNEMAK

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

The idea behind Apple Inc and TNEMAK 3625 28 JUN 31 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.