Correlation Between Aspire Global and Apple

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

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

Diversification Opportunities for Aspire Global and Apple

0.0

Correlation Coefficient

Aspire Global  Apple

Pay attention - limited upside

The 3 months correlation between Aspire and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Global Plc and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Aspire Global 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 Aspire Global Plc 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 Aspire Global i.e., Aspire Global and Apple go up and down completely randomly.

Pair Corralation between Aspire Global and Apple

If you would invest  14,017  in Apple Inc on January 25, 2024 and sell it today you would earn a total of  2,885  from holding Apple Inc or generate 20.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aspire Global Plc  vs.  Apple Inc

Aspire Global Plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aspire Global Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Aspire Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Apple Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Aspire Global and Apple

The main advantage of trading using opposite Aspire Global and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspire Global 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.

The idea behind Aspire Global Plc and Apple Inc 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.