Correlation Between Apple and SENKO GROUP

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

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

Diversification Opportunities for Apple and SENKO GROUP

0.71

Correlation Coefficient

Apple  SENKO GROUP

Poor diversification

The 3 months correlation between Apple and SENKO is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SENKO GROUP HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENKO GROUP HOLDINGS 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 SENKO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENKO GROUP HOLDINGS has no effect on the direction of Apple i.e., Apple and SENKO GROUP go up and down completely randomly.

Pair Corralation between Apple and SENKO GROUP

Assuming the 90 days trading horizon Apple Inc is expected to generate 0.65 times more return on investment than SENKO GROUP. However, Apple Inc is 1.53 times less risky than SENKO GROUP. It trades about -0.13 of its potential returns per unit of risk. SENKO GROUP HOLDINGS is currently generating about -0.14 per unit of risk. If you would invest  23,680  in Apple Inc on October 13, 2024 and sell it today you would lose (535.00) from holding Apple Inc or give up 2.26% of portfolio value over 90 days.

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

Apple Inc  vs.  SENKO GROUP HOLDINGS

Apple Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in February 2025.

SENKO GROUP HOLDINGS

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SENKO GROUP HOLDINGS are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SENKO GROUP may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Apple and SENKO GROUP

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

The idea behind Apple Inc and SENKO GROUP HOLDINGS 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.