Correlation Between Whirlpool and Apple
Can any of the company-specific risk be diversified away by investing in both Whirlpool 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 Whirlpool and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whirlpool and Apple Inc, you can compare the effects of market volatilities on Whirlpool 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 Whirlpool with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Apple.
Diversification Opportunities for Whirlpool and Apple
Good diversification
The 3 months correlation between Whirlpool and Apple is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Whirlpool 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 Whirlpool 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 Whirlpool i.e., Whirlpool and Apple go up and down completely randomly.
Pair Corralation between Whirlpool and Apple
Considering the 90-day investment horizon Whirlpool is expected to generate 1.3 times more return on investment than Apple. However, Whirlpool is 1.3 times more volatile than Apple Inc. It trades about 0.04 of its potential returns per unit of risk. Apple Inc is currently generating about -0.01 per unit of risk. If you would invest 10,519 in Whirlpool on January 17, 2024 and sell it today you would earn a total of 134.00 from holding Whirlpool or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Whirlpool vs. Apple Inc
Performance |
| Timeline |
| Whirlpool |
| Apple Inc |
Whirlpool and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whirlpool and Apple
The main advantage of trading using opposite Whirlpool and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool 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.| Whirlpool vs. Meta Materials | Whirlpool vs. Sphere 3D Corp | Whirlpool vs. Katapult Holdings | Whirlpool vs. Aquagold International |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |