Correlation Between Apple and QIIWI GAMES

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

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

Diversification Opportunities for Apple and QIIWI GAMES

0.71

Correlation Coefficient

Apple  QIIWI GAMES

Poor diversification

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

Pair Corralation between Apple and QIIWI GAMES

Assuming the 90 days trading horizon Apple Inc is expected to generate 0.42 times more return on investment than QIIWI GAMES. However, Apple Inc is 2.38 times less risky than QIIWI GAMES. It trades about -0.14 of its potential returns per unit of risk. QIIWI GAMES AB is currently generating about -0.2 per unit of risk. If you would invest  24,349  in Apple Inc on December 29, 2024 and sell it today you would lose (4,184) from holding Apple Inc or give up 17.18% 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.  QIIWI GAMES AB

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. Despite fragile performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

QIIWI GAMES AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days QIIWI GAMES AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Apple and QIIWI GAMES

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

The idea behind Apple Inc and QIIWI GAMES AB 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.