Correlation Between Apple and Excelsior Alimentos

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Can any of the company-specific risk be diversified away by investing in both Apple and Excelsior Alimentos 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 Excelsior Alimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Excelsior Alimentos SA, you can compare the effects of market volatilities on Apple and Excelsior Alimentos 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 Excelsior Alimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Excelsior Alimentos.

Diversification Opportunities for Apple and Excelsior Alimentos

AppleExcelsiorDiversified AwayAppleExcelsiorDiversified Away100%
-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between Apple and Excelsior is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Excelsior Alimentos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelsior Alimentos 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 Excelsior Alimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelsior Alimentos has no effect on the direction of Apple i.e., Apple and Excelsior Alimentos go up and down completely randomly.

Pair Corralation between Apple and Excelsior Alimentos

Assuming the 90 days trading horizon Apple Inc is expected to under-perform the Excelsior Alimentos. In addition to that, Apple is 8.59 times more volatile than Excelsior Alimentos SA. It trades about -0.01 of its total potential returns per unit of risk. Excelsior Alimentos SA is currently generating about 0.03 per unit of volatility. If you would invest  7,799  in Excelsior Alimentos SA on October 26, 2024 and sell it today you would earn a total of  21.00  from holding Excelsior Alimentos SA or generate 0.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  Excelsior Alimentos SA

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 05101520
JavaScript chart by amCharts 3.21.15AAPL34 BAUH4
       Timeline  
Apple Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Apple is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan65707580
Excelsior Alimentos 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Excelsior Alimentos SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Excelsior Alimentos is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan747576777879

Apple and Excelsior Alimentos Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.89-3.66-2.43-1.21-0.011.172.413.644.886.12 1234567
JavaScript chart by amCharts 3.21.15AAPL34 BAUH4
       Returns  

Pair Trading with Apple and Excelsior Alimentos

The main advantage of trading using opposite Apple and Excelsior Alimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Excelsior Alimentos 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 Excelsior Alimentos will offset losses from the drop in Excelsior Alimentos' long position.
The idea behind Apple Inc and Excelsior Alimentos SA 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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