Correlation Between CLEMONDO GROUP and Apple

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

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

Diversification Opportunities for CLEMONDO GROUP and Apple

-0.32

Correlation Coefficient

CLEMONDO GROUP  Apple

Very good diversification

The 3 months correlation between CLEMONDO and Apple is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding CLEMONDO GROUP AB and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and CLEMONDO GROUP 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 CLEMONDO GROUP AB 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 CLEMONDO GROUP i.e., CLEMONDO GROUP and Apple go up and down completely randomly.

Pair Corralation between CLEMONDO GROUP and Apple

Assuming the 90 days horizon CLEMONDO GROUP AB is expected to under-perform the Apple. In addition to that, CLEMONDO GROUP is 2.51 times more volatile than Apple Inc. It trades about -0.03 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.08 per unit of volatility. If you would invest  21,971  in Apple Inc on December 5, 2024 and sell it today you would earn a total of  474.00  from holding Apple Inc or generate 2.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	50.0%
Values	Daily Returns

CLEMONDO GROUP AB  vs.  Apple Inc

CLEMONDO GROUP AB

Risk-Adjusted Performance

OK

Over the last 90 days CLEMONDO GROUP AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly uncertain basic indicators, CLEMONDO GROUP reported solid returns over the last few months and may actually be approaching a breakup point.

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 very healthy fundamental indicators, Apple is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CLEMONDO GROUP and Apple

The main advantage of trading using opposite CLEMONDO GROUP and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLEMONDO GROUP 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 CLEMONDO GROUP AB 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 Global Correlations module to find global opportunities by holding instruments from different markets.