Correlation Between Kits Eyecare and Apple
Can any of the company-specific risk be diversified away by investing in both Kits Eyecare 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 Kits Eyecare and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kits Eyecare and Apple Inc CDR, you can compare the effects of market volatilities on Kits Eyecare 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 Kits Eyecare with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kits Eyecare and Apple.
Diversification Opportunities for Kits Eyecare and Apple
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kits and Apple is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kits Eyecare 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 Kits Eyecare 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 Kits Eyecare 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 Kits Eyecare i.e., Kits Eyecare and Apple go up and down completely randomly.
Pair Corralation between Kits Eyecare and Apple
Assuming the 90 days trading horizon Kits Eyecare is expected to generate 1.68 times more return on investment than Apple. However, Kits Eyecare is 1.68 times more volatile than Apple Inc CDR. It trades about 0.2 of its potential returns per unit of risk. Apple Inc CDR is currently generating about -0.13 per unit of risk. If you would invest 837.00 in Kits Eyecare on December 29, 2024 and sell it today you would earn a total of 349.00 from holding Kits Eyecare or generate 41.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kits Eyecare vs. Apple Inc CDR
Performance |
Timeline |
Kits Eyecare |
Apple Inc CDR |
Kits Eyecare and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kits Eyecare and Apple
The main advantage of trading using opposite Kits Eyecare and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kits Eyecare 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.Kits Eyecare vs. Data Communications Management | Kits Eyecare vs. Haivision Systems | Kits Eyecare vs. Thinkific Labs |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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