Correlation Between BOTS and Apple
Can any of the company-specific risk be diversified away by investing in both BOTS 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 BOTS and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOTS Inc and Apple Inc, you can compare the effects of market volatilities on BOTS 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 BOTS with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOTS and Apple.
Diversification Opportunities for BOTS and Apple
Pay attention - limited upside
The 3 months correlation between BOTS and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOTS Inc and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and BOTS 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 BOTS Inc 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 BOTS i.e., BOTS and Apple go up and down completely randomly.
Pair Corralation between BOTS and Apple
If you would invest (100.00) in BOTS Inc on December 29, 2023 and sell it today you would earn a total of 100.00 from holding BOTS Inc or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
BOTS Inc vs. Apple Inc
Performance |
Timeline |
BOTS Inc |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Apple Inc |
BOTS and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BOTS and Apple
The main advantage of trading using opposite BOTS and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOTS 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.BOTS vs. Avadel Pharmaceuticals PLC | BOTS vs. National CineMedia | BOTS vs. Viemed Healthcare | BOTS vs. Magnite |
Check out your portfolio center.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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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