Correlation Between Grupo Concesionario and Apple

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

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

Diversification Opportunities for Grupo Concesionario and Apple

-0.22

Correlation Coefficient

Grupo Concesionario  Apple

Very good diversification

The 3 months correlation between Grupo and Apple is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Concesionario del and Apple Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc DRC and Grupo Concesionario 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 Grupo Concesionario del 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 DRC has no effect on the direction of Grupo Concesionario i.e., Grupo Concesionario and Apple go up and down completely randomly.

Pair Corralation between Grupo Concesionario and Apple

Assuming the 90 days trading horizon Grupo Concesionario del is expected to under-perform the Apple. In addition to that, Grupo Concesionario is 1.09 times more volatile than Apple Inc DRC. It trades about -0.16 of its total potential returns per unit of risk. Apple Inc DRC is currently generating about 0.08 per unit of volatility. If you would invest  1,340,000  in Apple Inc DRC on December 4, 2024 and sell it today you would earn a total of  120,000  from holding Apple Inc DRC or generate 8.96% return on investment over 90 days.

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

Grupo Concesionario del  vs.  Apple Inc DRC

Grupo Concesionario del

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grupo Concesionario del has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Apple Inc DRC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc DRC are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Grupo Concesionario and Apple

The main advantage of trading using opposite Grupo Concesionario and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Concesionario 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 Grupo Concesionario del and Apple Inc DRC 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.