Correlation Between Apple and ASTRA GRAPHIA

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

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

Diversification Opportunities for Apple and ASTRA GRAPHIA

-0.1

Correlation Coefficient

Apple  ASTRA GRAPHIA

Good diversification

The 3 months correlation between Apple and ASTRA is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and ASTRA GRAPHIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA GRAPHIA 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 ASTRA GRAPHIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA GRAPHIA has no effect on the direction of Apple i.e., Apple and ASTRA GRAPHIA go up and down completely randomly.

Pair Corralation between Apple and ASTRA GRAPHIA

Assuming the 90 days trading horizon Apple Inc is expected to under-perform the ASTRA GRAPHIA. In addition to that, Apple is 1.33 times more volatile than ASTRA GRAPHIA. It trades about -0.48 of its total potential returns per unit of risk. ASTRA GRAPHIA is currently generating about -0.05 per unit of volatility. If you would invest  4.00  in ASTRA GRAPHIA on October 24, 2024 and sell it today you would lose (0.05) from holding ASTRA GRAPHIA or give up 1.25% of portfolio value over 90 days.

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

Apple Inc  vs.  ASTRA GRAPHIA

Apple Inc

Risk-Adjusted Performance

0 of 100

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 comparatively stable fundamental indicators, Apple is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ASTRA GRAPHIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASTRA GRAPHIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ASTRA GRAPHIA is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Apple and ASTRA GRAPHIA

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

The idea behind Apple Inc and ASTRA GRAPHIA 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.