Correlation Between GOING PUBL and Apple

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

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

Diversification Opportunities for GOING PUBL and Apple

-0.93

Correlation Coefficient

GOING PUBL  Apple

Pay attention - limited upside

The 3 months correlation between GOING and Apple is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding GOING PUBL MEDIA and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and GOING PUBL 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 GOING PUBL MEDIA 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 GOING PUBL i.e., GOING PUBL and Apple go up and down completely randomly.

Pair Corralation between GOING PUBL and Apple

Assuming the 90 days trading horizon GOING PUBL MEDIA is expected to under-perform the Apple. But the stock apears to be less risky and, when comparing its historical volatility, GOING PUBL MEDIA is 1.34 times less risky than Apple. The stock trades about -0.28 of its potential returns per unit of risk. The Apple Inc is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  20,820  in Apple Inc on September 30, 2024 and sell it today you would earn a total of  3,780  from holding Apple Inc or generate 18.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

GOING PUBL MEDIA  vs.  Apple Inc

GOING PUBL MEDIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GOING PUBL MEDIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 comparatively fragile fundamental indicators, Apple unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GOING PUBL and Apple

The main advantage of trading using opposite GOING PUBL and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOING PUBL 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 GOING PUBL MEDIA 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.