Correlation Between Apple and KTL GLOBAL

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

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

Diversification Opportunities for Apple and KTL GLOBAL

0.0

Correlation Coefficient

Apple  KTL GLOBAL

Pay attention - limited upside

The 3 months correlation between Apple and KTL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and KTL GLOBAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTL GLOBAL 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 KTL GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTL GLOBAL has no effect on the direction of Apple i.e., Apple and KTL GLOBAL go up and down completely randomly.

Pair Corralation between Apple and KTL GLOBAL

If you would invest  20,495  in Apple Inc on October 8, 2024 and sell it today you would earn a total of  3,130  from holding Apple Inc or generate 15.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Apple Inc  vs.  KTL GLOBAL

Apple Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Apple unveiled solid returns over the last few months and may actually be approaching a breakup point.

KTL GLOBAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KTL GLOBAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, KTL GLOBAL is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Apple and KTL GLOBAL

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

The idea behind Apple Inc and KTL GLOBAL 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..