Pair Correlation Between Apple and HP

This module allows you to analyze existing cross correlation between Apple Inc and HP Inc. You can compare the effects of market volatilities on Apple and HP 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 Apple with a short position of HP. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and HP.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Apple Inc  vs   HP Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 3.04 times less return on investment than HP. But when comparing it to its historical volatility, Apple Inc is 1.28 times less risky than HP. It trades about 0.26 of its potential returns per unit of risk. HP Inc is currently generating about 0.62 of returns per unit of risk over similar time horizon. If you would invest  2,123  in HP Inc on December 24, 2017 and sell it today you would earn a total of  256  from holding HP Inc or generate 12.06% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Apple and HP
0.86

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and HP Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HP Inc and Apple 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 Apple Inc are associated (or correlated) with HP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HP Inc has no effect on the direction of Apple i.e. Apple and HP go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Apple Inc

  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.

HP Inc

  
40 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in HP Inc are ranked lower than 40 (%) of all global equities and portfolios over the last 30 days.