Correlation Between Apple and PLAYSTUDIOS

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

By analyzing existing cross correlation between Apple Inc and PLAYSTUDIOS A DL 0001, you can compare the effects of market volatilities on Apple and PLAYSTUDIOS 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 PLAYSTUDIOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and PLAYSTUDIOS.

Diversification Opportunities for Apple and PLAYSTUDIOS

0.87

Correlation Coefficient

Apple  PLAYSTUDIOS

Very poor diversification

The 3 months correlation between Apple and PLAYSTUDIOS is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and PLAYSTUDIOS A DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYSTUDIOS A DL 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 PLAYSTUDIOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYSTUDIOS A DL has no effect on the direction of Apple i.e., Apple and PLAYSTUDIOS go up and down completely randomly.

Pair Corralation between Apple and PLAYSTUDIOS

Assuming the 90 days trading horizon Apple Inc is expected to generate 0.53 times more return on investment than PLAYSTUDIOS. However, Apple Inc is 1.89 times less risky than PLAYSTUDIOS. It trades about -0.15 of its potential returns per unit of risk. PLAYSTUDIOS A DL 0001 is currently generating about -0.2 per unit of risk. If you would invest  24,489  in Apple Inc on December 26, 2024 and sell it today you would lose (4,029) from holding Apple Inc or give up 16.45% of portfolio value over 90 days.

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

Apple Inc  vs.  PLAYSTUDIOS A DL 0001

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. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

PLAYSTUDIOS A DL

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLAYSTUDIOS A DL 0001 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 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 PLAYSTUDIOS

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

The idea behind Apple Inc and PLAYSTUDIOS A DL 0001 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.