Correlation Between Yaacobi Brothers and Apple
Can any of the company-specific risk be diversified away by investing in both Yaacobi Brothers 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 Yaacobi Brothers and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yaacobi Brothers Group and Apple Inc, you can compare the effects of market volatilities on Yaacobi Brothers 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 Yaacobi Brothers with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yaacobi Brothers and Apple.
Diversification Opportunities for Yaacobi Brothers and Apple
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yaacobi and Apple is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Yaacobi Brothers Group and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Yaacobi Brothers 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 Yaacobi Brothers Group 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 Yaacobi Brothers i.e., Yaacobi Brothers and Apple go up and down completely randomly.
Pair Corralation between Yaacobi Brothers and Apple
Assuming the 90 days trading horizon Yaacobi Brothers Group is expected to generate 2.09 times more return on investment than Apple. However, Yaacobi Brothers is 2.09 times more volatile than Apple Inc. It trades about 0.02 of its potential returns per unit of risk. Apple Inc is currently generating about -0.18 per unit of risk. If you would invest 4,390 in Yaacobi Brothers Group on January 25, 2024 and sell it today you would earn a total of 60.00 from holding Yaacobi Brothers Group or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.78% |
| Values | Daily Returns |
Yaacobi Brothers Group vs. Apple Inc
Performance |
| Timeline |
| Yaacobi Brothers |
| Apple Inc |
Yaacobi Brothers and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yaacobi Brothers and Apple
The main advantage of trading using opposite Yaacobi Brothers and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yaacobi Brothers 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.| Yaacobi Brothers vs. Alony Hetz Properties | Yaacobi Brothers vs. Melisron | Yaacobi Brothers vs. Shufersal | Yaacobi Brothers vs. Israel Discount Bank |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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