Correlation Between GGL Resources and Apple

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

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

Diversification Opportunities for GGL Resources and Apple

0.66

Correlation Coefficient

GGL Resources  Apple

Poor diversification

The 3 months correlation between GGL and Apple is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GGL Resources Corp and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and GGL Resources 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 GGL Resources Corp 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 GGL Resources i.e., GGL Resources and Apple go up and down completely randomly.

Pair Corralation between GGL Resources and Apple

Assuming the 90 days horizon GGL Resources Corp is expected to under-perform the Apple. In addition to that, GGL Resources is 3.76 times more volatile than Apple Inc. It trades about -0.16 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.09 per unit of volatility. If you would invest  17,275  in Apple Inc on February 8, 2024 and sell it today you would earn a total of  965.00  from holding Apple Inc or generate 5.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.56%
Values	Daily Returns

GGL Resources Corp  vs.  Apple Inc

GGL Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GGL Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long-run up-swing for the company 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 quite persistent basic indicators, Apple is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with GGL Resources and Apple

The main advantage of trading using opposite GGL Resources and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GGL Resources 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 GGL Resources Corp 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.