Correlation Between Mako Mining and Apple
Can any of the company-specific risk be diversified away by investing in both Mako Mining 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 Mako Mining and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Apple Inc CDR, you can compare the effects of market volatilities on Mako Mining 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 Mako Mining with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Apple.
Diversification Opportunities for Mako Mining and Apple
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mako and Apple is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp 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 Mako Mining 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 Mako Mining Corp 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 Mako Mining i.e., Mako Mining and Apple go up and down completely randomly.
Pair Corralation between Mako Mining and Apple
Assuming the 90 days horizon Mako Mining Corp is expected to under-perform the Apple. In addition to that, Mako Mining is 2.34 times more volatile than Apple Inc CDR. It trades about -0.07 of its total potential returns per unit of risk. Apple Inc CDR is currently generating about 0.24 per unit of volatility. If you would invest 3,396 in Apple Inc CDR on September 25, 2024 and sell it today you would earn a total of 342.00 from holding Apple Inc CDR or generate 10.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mako Mining Corp vs. Apple Inc CDR
Performance |
Timeline |
Mako Mining Corp |
Apple Inc CDR |
Mako Mining and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mako Mining and Apple
The main advantage of trading using opposite Mako Mining and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining 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.Mako Mining vs. Wildsky Resources | Mako Mining vs. Q Gold Resources | Mako Mining vs. Plato Gold Corp | Mako Mining vs. MAS Gold Corp |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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