Correlation Between AXMIN and Apple

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

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

Diversification Opportunities for AXMIN and Apple

0.0

Correlation Coefficient

AXMIN  Apple

Pay attention - limited upside

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

Pair Corralation between AXMIN and Apple

Assuming the 90 days trading horizon AXMIN Inc is expected to generate 3.58 times more return on investment than Apple. However, AXMIN is 3.58 times more volatile than Apple Inc. It trades about 0.03 of its potential returns per unit of risk. Apple Inc is currently generating about 0.09 per unit of risk. If you would invest  1.20  in AXMIN Inc on September 23, 2024 and sell it today you would earn a total of  0.05  from holding AXMIN Inc or generate 4.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.64%
Values	Daily Returns

AXMIN Inc  vs.  Apple Inc

AXMIN Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AXMIN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AXMIN is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Apple Inc

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental indicators, Apple unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AXMIN and Apple

The main advantage of trading using opposite AXMIN and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXMIN 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 AXMIN Inc 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.