Correlation Between Apple CDR and IA Financial
Can any of the company-specific risk be diversified away by investing in both Apple CDR and IA Financial 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 CDR and IA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple CDR and iA Financial, you can compare the effects of market volatilities on Apple CDR and IA Financial 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 CDR with a short position of IA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple CDR and IA Financial.
Diversification Opportunities for Apple CDR and IA Financial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Apple and IAG is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Apple CDR and iA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iA Financial and Apple CDR 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 CDR are associated (or correlated) with IA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iA Financial has no effect on the direction of Apple CDR i.e., Apple CDR and IA Financial go up and down completely randomly.
Pair Corralation between Apple CDR and IA Financial
Assuming the 90 days trading horizon Apple CDR is expected to generate 1.32 times more return on investment than IA Financial. However, Apple CDR is 1.32 times more volatile than iA Financial. It trades about 0.19 of its potential returns per unit of risk. iA Financial is currently generating about 0.15 per unit of risk. If you would invest 3,299 in Apple CDR on September 1, 2025 and sell it today you would earn a total of 676.00 from holding Apple CDR or generate 20.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple CDR vs. iA Financial
Performance |
| Timeline |
| Apple CDR |
| iA Financial |
Apple CDR and IA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple CDR and IA Financial
The main advantage of trading using opposite Apple CDR and IA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple CDR position performs unexpectedly, IA Financial 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 IA Financial will offset losses from the drop in IA Financial's long position.| Apple CDR vs. Sparx Technology | Apple CDR vs. Cogeco Communications | Apple CDR vs. Big Rock Brewery | Apple CDR vs. NeXGold Mining Corp |
| IA Financial vs. Data Communications Management | IA Financial vs. Uniserve Communications Corp | IA Financial vs. TGS Esports | IA Financial vs. Getty Copper |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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