This module allows you to analyze existing cross correlation between Apple and Sprint Corporation. You can compare the effects of market volatilities on Apple and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and Sprint.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in September 2019.
Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Sprint is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short term losses for the management.
Apple and Sprint Volatility Contrast
Predicted Return Density
Apple Inc vs. Sprint Corp.
Given the investment horizon of 30 days, Apple is expected to generate 0.67 times more return on investment than Sprint. However, Apple is 1.5 times less risky than Sprint. It trades about 0.1 of its potential returns per unit of risk. Sprint Corporation is currently generating about 0.01 per unit of risk. If you would invest 19,858 in Apple on July 22, 2019 and sell it today you would earn a total of 1,465 from holding Apple or generate 7.38% return on investment over 30 days.
Pair Corralation between Apple and Sprint
|Time Period||2 Months [change]|
Diversification Opportunities for Apple and Sprint
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 are associated (or correlated) with Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of Apple i.e. Apple and Sprint go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.