Correlation Between Apple and Stag Industrial
Can any of the company-specific risk be diversified away by investing in both Apple and Stag Industrial 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 Stag Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Stag Industrial, you can compare the effects of market volatilities on Apple and Stag Industrial 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 Stag Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Stag Industrial.
Diversification Opportunities for Apple and Stag Industrial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Stag is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Stag Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stag Industrial 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 Stag Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stag Industrial has no effect on the direction of Apple i.e., Apple and Stag Industrial go up and down completely randomly.
Pair Corralation between Apple and Stag Industrial
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.79 times more return on investment than Stag Industrial. However, Apple Inc is 1.27 times less risky than Stag Industrial. It trades about 0.35 of its potential returns per unit of risk. Stag Industrial is currently generating about -0.06 per unit of risk. If you would invest 20,286 in Apple Inc on October 6, 2024 and sell it today you would earn a total of 3,374 from holding Apple Inc or generate 16.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Apple Inc vs. Stag Industrial
Performance |
Timeline |
Apple Inc |
Stag Industrial |
Apple and Stag Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apple and Stag Industrial
The main advantage of trading using opposite Apple and Stag Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Stag Industrial 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 Stag Industrial will offset losses from the drop in Stag Industrial's long position.Apple vs. 24SEVENOFFICE GROUP AB | Apple vs. CAIRN HOMES EO | Apple vs. International Consolidated Airlines | Apple vs. Nok Airlines PCL |
Stag Industrial vs. Apple Inc | Stag Industrial vs. Apple Inc | Stag Industrial vs. Apple Inc | Stag Industrial vs. Apple Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |