Correlation Between Apple and Avantis Core
Can any of the company-specific risk be diversified away by investing in both Apple and Avantis Core 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 Avantis Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Avantis Core Fixed, you can compare the effects of market volatilities on Apple and Avantis Core 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 Avantis Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Avantis Core.
Diversification Opportunities for Apple and Avantis Core
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apple and Avantis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Avantis Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis Core Fixed 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 Avantis Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis Core Fixed has no effect on the direction of Apple i.e., Apple and Avantis Core go up and down completely randomly.
Pair Corralation between Apple and Avantis Core
Given the investment horizon of 90 days Apple Inc is expected to generate 6.98 times more return on investment than Avantis Core. However, Apple is 6.98 times more volatile than Avantis Core Fixed. It trades about 0.19 of its potential returns per unit of risk. Avantis Core Fixed is currently generating about 0.15 per unit of risk. If you would invest 23,067 in Apple Inc on August 18, 2025 and sell it today you would earn a total of 4,174 from holding Apple Inc or generate 18.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Avantis Core Fixed
Performance |
| Timeline |
| Apple Inc |
| Avantis Core Fixed |
Apple and Avantis Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Avantis Core
The main advantage of trading using opposite Apple and Avantis Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Avantis Core 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 Avantis Core will offset losses from the drop in Avantis Core's long position.| Apple vs. NetApp Inc | Apple vs. Rigetti Computing | Apple vs. Leidos Holdings | Apple vs. Teledyne Technologies Incorporated |
| Avantis Core vs. First Trust Exchange Traded | Avantis Core vs. AB Ultra Short | Avantis Core vs. Invesco Variable Rate | Avantis Core vs. Janus Detroit Street |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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