Correlation Between Apple and Duck Creek

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Can any of the company-specific risk be diversified away by investing in both Apple and Duck Creek 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 Apple and Duck Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Duck Creek Technologies, you can compare the effects of market volatilities on Apple and Duck Creek 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 Apple with a short position of Duck Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Duck Creek.

Diversification Opportunities for Apple and Duck Creek

-0.31
  Correlation Coefficient

Very good diversification

The 3 months correlation between Apple and Duck Creek is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Duck Creek Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duck Creek Technologies and Apple 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 Apple Inc are associated (or correlated) with Duck Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duck Creek Technologies has no effect on the direction of Apple i.e., Apple and Duck Creek go up and down completely randomly.

Pair Corralation between Apple and Duck Creek

Given the investment horizon of 90 days Apple Inc is expected to generate 0.63 times more return on investment than Duck Creek. However, Apple Inc is 1.58 times less risky than Duck Creek. It trades about -0.07 of its potential returns per unit of risk. Duck Creek Technologies is currently generating about -0.1 per unit of risk. If you would invest  17,844  in Apple Inc on July 2, 2022 and sell it today you would lose (3,596)  from holding Apple Inc or give up 20.15% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  Duck Creek Technologies

 Performance (%) 
       Timeline  
Apple Inc 
Apple Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady basic indicators, Apple is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Apple Price Channel

Duck Creek Technologies 
Duck Creek Performance
0 of 100
Over the last 90 days Duck Creek Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in October 2022. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Duck Creek Price Channel

Apple and Duck Creek Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and Duck Creek

The main advantage of trading using opposite Apple and Duck Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Duck Creek 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 Duck Creek will offset losses from the drop in Duck Creek's long position.
Apple vs. Amazon Inc
The idea behind Apple Inc and Duck Creek Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Duck Creek vs. Microsoft Corp
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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