Correlation Between MSAD Insurance and Apple
Can any of the company-specific risk be diversified away by investing in both MSAD Insurance 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 MSAD Insurance and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSAD Insurance Group and Apple Inc, you can compare the effects of market volatilities on MSAD Insurance 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 MSAD Insurance with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSAD Insurance and Apple.
Diversification Opportunities for MSAD Insurance and Apple
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MSAD and Apple is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding MSAD Insurance Group and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and MSAD Insurance 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 MSAD Insurance Group 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 MSAD Insurance i.e., MSAD Insurance and Apple go up and down completely randomly.
Pair Corralation between MSAD Insurance and Apple
Assuming the 90 days horizon MSAD Insurance Group is expected to generate 1.13 times more return on investment than Apple. However, MSAD Insurance is 1.13 times more volatile than Apple Inc. It trades about 0.02 of its potential returns per unit of risk. Apple Inc is currently generating about -0.19 per unit of risk. If you would invest 1,705 in MSAD Insurance Group on January 20, 2024 and sell it today you would earn a total of 10.00 from holding MSAD Insurance Group or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MSAD Insurance Group vs. Apple Inc
Performance |
| Timeline |
| MSAD Insurance Group |
| Apple Inc |
MSAD Insurance and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSAD Insurance and Apple
The main advantage of trading using opposite MSAD Insurance and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSAD Insurance 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.| MSAD Insurance vs. AAC Clyde Space | MSAD Insurance vs. Avante Logixx | MSAD Insurance vs. Corby Spirit and | MSAD Insurance vs. HUMANA INC |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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