Correlation Between Apple and Cabaletta Bio
Can any of the company-specific risk be diversified away by investing in both Apple and Cabaletta Bio 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 Cabaletta Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Cabaletta Bio, you can compare the effects of market volatilities on Apple and Cabaletta Bio 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 Cabaletta Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Cabaletta Bio.
Diversification Opportunities for Apple and Cabaletta Bio
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apple and Cabaletta is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Cabaletta Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabaletta Bio 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 Cabaletta Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabaletta Bio has no effect on the direction of Apple i.e., Apple and Cabaletta Bio go up and down completely randomly.
Pair Corralation between Apple and Cabaletta Bio
Given the investment horizon of 90 days Apple is expected to generate 3.81 times less return on investment than Cabaletta Bio. But when comparing it to its historical volatility, Apple Inc is 4.17 times less risky than Cabaletta Bio. It trades about 0.17 of its potential returns per unit of risk. Cabaletta Bio is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Cabaletta Bio on July 20, 2025 and sell it today you would earn a total of 121.00 from holding Cabaletta Bio or generate 73.78% 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. Cabaletta Bio
Performance |
| Timeline |
| Apple Inc |
| Cabaletta Bio |
Apple and Cabaletta Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Cabaletta Bio
The main advantage of trading using opposite Apple and Cabaletta Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Cabaletta Bio 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 Cabaletta Bio will offset losses from the drop in Cabaletta Bio's long position.| Apple vs. AXIL Brands, | Apple vs. Turtle Beach | Apple vs. Algorhythm Holdings, | Apple vs. Universal Electronics |
| Cabaletta Bio vs. Allogene Therapeutics | Cabaletta Bio vs. Inventiva Sa | Cabaletta Bio vs. Ventyx Biosciences | Cabaletta Bio vs. Neumora Therapeutics, |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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