Correlation Between Moving IMage and Apple
Can any of the company-specific risk be diversified away by investing in both Moving IMage 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 Moving IMage and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moving iMage Technologies and Apple Inc, you can compare the effects of market volatilities on Moving IMage 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 Moving IMage with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moving IMage and Apple.
Diversification Opportunities for Moving IMage and Apple
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Moving and Apple is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Moving iMage Technologies and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Moving IMage 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 Moving iMage Technologies 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 Moving IMage i.e., Moving IMage and Apple go up and down completely randomly.
Pair Corralation between Moving IMage and Apple
Given the investment horizon of 90 days Moving iMage Technologies is expected to under-perform the Apple. In addition to that, Moving IMage is 3.3 times more volatile than Apple Inc. It trades about -0.05 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.04 per unit of volatility. If you would invest 15,080 in Apple Inc on January 31, 2024 and sell it today you would earn a total of 1,953 from holding Apple Inc or generate 12.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Moving iMage Technologies vs. Apple Inc
Performance |
Timeline |
Moving iMage Technologies |
Apple Inc |
Moving IMage and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Moving IMage and Apple
The main advantage of trading using opposite Moving IMage and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moving IMage 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.Moving IMage vs. Ubiquiti Networks | Moving IMage vs. Viavi Solutions | Moving IMage vs. Vislink Technologies | Moving IMage vs. DZS 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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