Correlation Between Apple and JLT MOBILE
Can any of the company-specific risk be diversified away by investing in both Apple and JLT MOBILE 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 JLT MOBILE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and JLT MOBILE PUTER, you can compare the effects of market volatilities on Apple and JLT MOBILE 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 JLT MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and JLT MOBILE.
Diversification Opportunities for Apple and JLT MOBILE
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apple and JLT is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and JLT MOBILE PUTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLT MOBILE PUTER 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 JLT MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLT MOBILE PUTER has no effect on the direction of Apple i.e., Apple and JLT MOBILE go up and down completely randomly.
Pair Corralation between Apple and JLT MOBILE
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the JLT MOBILE. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 3.67 times less risky than JLT MOBILE. The stock trades about -0.05 of its potential returns per unit of risk. The JLT MOBILE PUTER is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 16.00 in JLT MOBILE PUTER on December 10, 2024 and sell it today you would earn a total of 4.00 from holding JLT MOBILE PUTER or generate 25.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Apple Inc vs. JLT MOBILE PUTER
Performance |
Timeline |
Apple Inc |
JLT MOBILE PUTER |
Apple and JLT MOBILE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apple and JLT MOBILE
The main advantage of trading using opposite Apple and JLT MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, JLT MOBILE 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 JLT MOBILE will offset losses from the drop in JLT MOBILE's long position.Apple vs. STORE ELECTRONIC | Apple vs. Samsung Electronics Co | Apple vs. NORDHEALTH AS NK | Apple vs. AOI Electronics Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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