Correlation Between FuelCell Energy and Apple
Can any of the company-specific risk be diversified away by investing in both FuelCell Energy 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 FuelCell Energy and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelCell Energy and Apple Inc, you can compare the effects of market volatilities on FuelCell Energy 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 FuelCell Energy with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelCell Energy and Apple.
Diversification Opportunities for FuelCell Energy and Apple
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between FuelCell and Apple is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding FuelCell Energy and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and FuelCell Energy 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 FuelCell Energy 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 FuelCell Energy i.e., FuelCell Energy and Apple go up and down completely randomly.
Pair Corralation between FuelCell Energy and Apple
Assuming the 90 days trading horizon FuelCell Energy is expected to under-perform the Apple. In addition to that, FuelCell Energy is 4.07 times more volatile than Apple Inc. It trades about -0.04 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.1 per unit of volatility. If you would invest 12,264 in Apple Inc on September 23, 2024 and sell it today you would earn a total of 11,851 from holding Apple Inc or generate 96.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
FuelCell Energy vs. Apple Inc
Performance |
Timeline |
FuelCell Energy |
Apple Inc |
FuelCell Energy and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FuelCell Energy and Apple
The main advantage of trading using opposite FuelCell Energy and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelCell Energy 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.FuelCell Energy vs. BRIT AMER TOBACCO | FuelCell Energy vs. Casio Computer CoLtd | FuelCell Energy vs. Align Technology | FuelCell Energy vs. DXC Technology Co |
Apple vs. COMBA TELECOM SYST | Apple vs. Spirent Communications plc | Apple vs. MARKET VECTR RETAIL | Apple vs. CITIC Telecom International |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |