Correlation Between Equital and Apple
Can any of the company-specific risk be diversified away by investing in both Equital 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 Equital and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equital and Apple Inc, you can compare the effects of market volatilities on Equital 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 Equital with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equital and Apple.
Diversification Opportunities for Equital and Apple
Excellent diversification
The 3 months correlation between Equital and Apple is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Equital and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Equital 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 Equital 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 Equital i.e., Equital and Apple go up and down completely randomly.
Pair Corralation between Equital and Apple
Assuming the 90 days trading horizon Equital is expected to generate 1.34 times less return on investment than Apple. In addition to that, Equital is 1.66 times more volatile than Apple Inc. It trades about 0.01 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.03 per unit of volatility. If you would invest 15,056 in Apple Inc on December 29, 2023 and sell it today you would earn a total of 2,275 from holding Apple Inc or generate 15.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 79.32% |
Values | Daily Returns |
Equital vs. Apple Inc
Performance |
Timeline |
Equital |
Apple Inc |
Equital and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Equital and Apple
The main advantage of trading using opposite Equital and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equital 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.Equital vs. Isracard | Equital vs. Migdal Insurance | Equital vs. Clal Insurance Enterprises | Equital vs. Bank Leumi Le Israel |
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
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |