Correlation Between Sparindex INDEX and Apple

By analyzing existing cross correlation between Sparindex INDEX USA and Apple Inc, you can compare the effects of market volatilities on Sparindex INDEX 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 Sparindex INDEX with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparindex INDEX and Apple.

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Can any of the company-specific risk be diversified away by investing in both Sparindex INDEX 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 Sparindex INDEX and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Sparindex INDEX and Apple

  Correlation Coefficient
Sparindex INDEX USA
Apple Inc

Average diversification

The 3 months correlation between Sparindex and Apple is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sparindex INDEX USA Value KL and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Sparindex INDEX 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 Sparindex INDEX USA 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 Sparindex INDEX i.e. Sparindex INDEX and Apple go up and down completely randomly.

Pair Corralation between Sparindex INDEX and Apple

If you would invest  27,325  in Apple Inc on June 10, 2020 and sell it today you would earn a total of  10,948  from holding Apple Inc or generate 40.07% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

Sparindex INDEX USA Value KL  vs.  Apple Inc

 Performance (%) 
Sparindex INDEX USA 

Sparindex INDEX Risk-Adjusted Performance

Over the last 30 days Sparindex INDEX USA has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, Sparindex INDEX is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
Apple Inc 

Apple Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.

Sparindex INDEX and Apple Volatility Contrast

 Predicted Return Density 
Check out your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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