Correlation Between Apple and Gruppo Mutuionline

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

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

Diversification Opportunities for Apple and Gruppo Mutuionline

-0.14

Correlation Coefficient

Apple  Gruppo Mutuionline

Good diversification

The 3 months correlation between Apple and Gruppo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of Apple i.e., Apple and Gruppo Mutuionline go up and down completely randomly.

Pair Corralation between Apple and Gruppo Mutuionline

Assuming the 90 days trading horizon Apple Inc is expected to under-perform the Gruppo Mutuionline. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.15 times less risky than Gruppo Mutuionline. The stock trades about -0.13 of its potential returns per unit of risk. The Gruppo Mutuionline SpA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  3,535  in Gruppo Mutuionline SpA on December 30, 2024 and sell it today you would earn a total of  460.00  from holding Gruppo Mutuionline SpA or generate 13.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Apple Inc  vs.  Gruppo Mutuionline SpA

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. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Gruppo Mutuionline SpA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gruppo Mutuionline SpA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Gruppo Mutuionline unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and Gruppo Mutuionline

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

The idea behind Apple Inc and Gruppo Mutuionline SpA 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.