Correlation Between Wilmington Capital and Apple

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

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

Diversification Opportunities for Wilmington Capital and Apple

-0.75

Correlation Coefficient

Wilmington Capital  Apple

Pay attention - limited upside

The 3 months correlation between Wilmington and Apple is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Capital Management and Apple Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc CDR and Wilmington Capital 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 Wilmington Capital Management 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 CDR has no effect on the direction of Wilmington Capital i.e., Wilmington Capital and Apple go up and down completely randomly.

Pair Corralation between Wilmington Capital and Apple

Assuming the 90 days trading horizon Wilmington Capital Management is expected to under-perform the Apple. In addition to that, Wilmington Capital is 2.16 times more volatile than Apple Inc CDR. It trades about -0.06 of its total potential returns per unit of risk. Apple Inc CDR is currently generating about 0.17 per unit of volatility. If you would invest  3,317  in Apple Inc CDR on September 25, 2024 and sell it today you would earn a total of  421.00  from holding Apple Inc CDR or generate 12.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Wilmington Capital Management  vs.  Apple Inc CDR

Wilmington Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wilmington Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Apple Inc CDR

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc CDR are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Wilmington Capital and Apple

The main advantage of trading using opposite Wilmington Capital and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Capital 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 Wilmington Capital Management and Apple Inc CDR 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.