Correlation Between WASION GROUP and Apple

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

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

Diversification Opportunities for WASION GROUP and Apple

0.0

Correlation Coefficient

WASION GROUP  Apple

Pay attention - limited upside

The 3 months correlation between WASION and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WASION GROUP HLDGS and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and WASION 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 WASION GROUP HLDGS 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 WASION GROUP i.e., WASION GROUP and Apple go up and down completely randomly.

Pair Corralation between WASION GROUP and Apple

If you would invest  13,180  in Apple Inc on September 4, 2024 and sell it today you would earn a total of  9,635  from holding Apple Inc or generate 73.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

WASION GROUP HLDGS  vs.  Apple Inc

WASION GROUP HLDGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WASION GROUP HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, WASION GROUP is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Apple Inc

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental indicators, Apple unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WASION GROUP and Apple

The main advantage of trading using opposite WASION GROUP and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WASION 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 WASION GROUP HLDGS 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.