Correlation Between VOXX International and Apple
Can any of the company-specific risk be diversified away by investing in both VOXX International 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 VOXX International and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VOXX International and Apple Inc, you can compare the effects of market volatilities on VOXX International 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 VOXX International with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of VOXX International and Apple.
Diversification Opportunities for VOXX International and Apple
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VOXX and Apple is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and VOXX International 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 VOXX International 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 VOXX International i.e., VOXX International and Apple go up and down completely randomly.
Pair Corralation between VOXX International and Apple
Given the investment horizon of 90 days VOXX International is expected to generate 2.35 times more return on investment than Apple. However, VOXX International is 2.35 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 0.02 per unit of risk. If you would invest 757.00 in VOXX International on January 19, 2024 and sell it today you would lose (40.00) from holding VOXX International or give up 5.28% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
VOXX International vs. Apple Inc
Performance |
Timeline |
VOXX International |
Apple Inc |
VOXX International and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VOXX International and Apple
The main advantage of trading using opposite VOXX International and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International 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.VOXX International vs. LG Display Co | VOXX International vs. Vizio Holding Corp | VOXX International vs. Turtle Beach Corp | VOXX International vs. Emerson Radio |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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