Correlation Between CARGOJET INC and Apple

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

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

Diversification Opportunities for CARGOJET INC and Apple

0.48

Correlation Coefficient

CARGOJET INC  Apple

Very weak diversification

The 3 months correlation between CARGOJET and Apple is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CARGOJET INC VAR and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and CARGOJET INC 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 CARGOJET INC VAR 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 has no effect on the direction of CARGOJET INC i.e., CARGOJET INC and Apple go up and down completely randomly.

Pair Corralation between CARGOJET INC and Apple

Assuming the 90 days trading horizon CARGOJET INC VAR is expected to under-perform the Apple. In addition to that, CARGOJET INC is 1.42 times more volatile than Apple Inc. It trades about -0.13 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.18 per unit of volatility. If you would invest  24,359  in Apple Inc on December 22, 2024 and sell it today you would lose (4,529) from holding Apple Inc or give up 18.59% of portfolio value over 90 days.

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

CARGOJET INC VAR  vs.  Apple Inc

CARGOJET INC VAR

Risk-Adjusted Performance

Very Weak

Over the last 90 days CARGOJET INC VAR 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.

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 fundamental 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.

Pair Trading with CARGOJET INC and Apple

The main advantage of trading using opposite CARGOJET INC and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARGOJET INC 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 CARGOJET INC VAR and Apple Inc 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 Anywhere module to track or share privately all of your investments from the convenience of any device.