Correlation Between BTQ Technologies and Apple

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

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

Diversification Opportunities for BTQ Technologies and Apple

0.78

Correlation Coefficient

BTQ Technologies  Apple

Poor diversification

The 3 months correlation between BTQ and Apple is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding BTQ Technologies Corp and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and BTQ Technologies 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 BTQ Technologies 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 BTQ Technologies i.e., BTQ Technologies and Apple go up and down completely randomly.

Pair Corralation between BTQ Technologies and Apple

Assuming the 90 days horizon BTQ Technologies Corp is expected to generate 20.06 times more return on investment than Apple. However, BTQ Technologies is 20.06 times more volatile than Apple Inc. It trades about 0.22 of its potential returns per unit of risk. Apple Inc is currently generating about 0.18 per unit of risk. If you would invest  26.00  in BTQ Technologies Corp on September 25, 2024 and sell it today you would earn a total of  185.00  from holding BTQ Technologies Corp or generate 711.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.92%
Values	Daily Returns

BTQ Technologies Corp  vs.  Apple Inc

BTQ Technologies Corp

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BTQ Technologies Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, BTQ Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Apple Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with BTQ Technologies and Apple

The main advantage of trading using opposite BTQ Technologies and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTQ Technologies 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 BTQ Technologies 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.