Correlation Between Lineage Cell and Apple
Can any of the company-specific risk be diversified away by investing in both Lineage Cell 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 Lineage Cell and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lineage Cell Therapeutics and Apple Inc, you can compare the effects of market volatilities on Lineage Cell 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 Lineage Cell with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lineage Cell and Apple.
Diversification Opportunities for Lineage Cell and Apple
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lineage and Apple is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lineage Cell Therapeutics and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Lineage Cell 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 Lineage Cell Therapeutics 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 Lineage Cell i.e., Lineage Cell and Apple go up and down completely randomly.
Pair Corralation between Lineage Cell and Apple
Assuming the 90 days trading horizon Lineage Cell Therapeutics is expected to generate 3.68 times more return on investment than Apple. However, Lineage Cell is 3.68 times more volatile than Apple Inc. It trades about 0.01 of its potential returns per unit of risk. Apple Inc is currently generating about -0.01 per unit of risk. If you would invest 46,800 in Lineage Cell Therapeutics on January 25, 2024 and sell it today you would lose (2,950) from holding Lineage Cell Therapeutics or give up 6.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.7% |
| Values | Daily Returns |
Lineage Cell Therapeutics vs. Apple Inc
Performance |
| Timeline |
| Lineage Cell Therapeutics |
| Apple Inc |
Lineage Cell and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lineage Cell and Apple
The main advantage of trading using opposite Lineage Cell and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lineage Cell 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.| Lineage Cell vs. Global Knafaim Leasing | Lineage Cell vs. Magic Software Enterprises | Lineage Cell vs. Wesure Global Tech | Lineage Cell vs. Teuza A Fairchild |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |