Correlation Between BLUERUSH Media and Apple

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

By analyzing existing cross correlation between BLUERUSH Media Group and Apple Inc CDR, you can compare the effects of market volatilities on BLUERUSH Media and Apple 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 BLUERUSH Media with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLUERUSH Media and Apple.

Diversification Opportunities for BLUERUSH Media and Apple

-0.3

Correlation Coefficient

BLUERUSH Media  Apple

Very good diversification

The 3 months correlation between BLUERUSH and Apple is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding BLUERUSH Media Group and Apple Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc CDR and BLUERUSH Media 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 BLUERUSH Media Group are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc CDR has no effect on the direction of BLUERUSH Media i.e., BLUERUSH Media and Apple go up and down completely randomly.

Pair Corralation between BLUERUSH Media and Apple

Assuming the 90 days horizon BLUERUSH Media Group is expected to generate 20.66 times more return on investment than Apple. However, BLUERUSH Media is 20.66 times more volatile than Apple Inc CDR. It trades about 0.06 of its potential returns per unit of risk. Apple Inc CDR is currently generating about 0.14 per unit of risk. If you would invest  2.00  in BLUERUSH Media Group on September 13, 2024 and sell it today you would lose (1.00) from holding BLUERUSH Media Group or give up 50.0% of portfolio value over 90 days.

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

BLUERUSH Media Group  vs.  Apple Inc CDR

BLUERUSH Media Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BLUERUSH Media Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, BLUERUSH Media showed solid returns over the last few months and may actually be approaching a breakup point.

Apple Inc CDR

Risk-Adjusted Performance

10 of 100

OK

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

Pair Trading with BLUERUSH Media and Apple

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

The idea behind BLUERUSH Media Group and Apple Inc CDR 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.