Correlation Between Apple and Mobilezone Holding

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

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

Diversification Opportunities for Apple and Mobilezone Holding

0.0

Correlation Coefficient

Apple  Mobilezone Holding

Pay attention - limited upside

The 3 months correlation between Apple and Mobilezone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Mobilezone Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobilezone Holding 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 Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobilezone Holding has no effect on the direction of Apple i.e., Apple and Mobilezone Holding go up and down completely randomly.

Pair Corralation between Apple and Mobilezone Holding

If you would invest  21,370  in Apple Inc on September 17, 2024 and sell it today you would earn a total of  2,245  from holding Apple Inc or generate 10.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Apple Inc  vs.  Mobilezone Holding AG

Apple Inc

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Apple exhibited solid returns over the last few months and may actually be approaching a breakup point.

Mobilezone Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobilezone Holding AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mobilezone Holding is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Apple and Mobilezone Holding

The main advantage of trading using opposite Apple and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding's long position.

The idea behind Apple Inc and Mobilezone Holding AG 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.