Correlation Between Apple and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Apple and Meta Platforms 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 Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Meta Platforms, you can compare the effects of market volatilities on Apple and Meta Platforms 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 Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Meta Platforms.
Diversification Opportunities for Apple and Meta Platforms
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Meta is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Apple i.e., Apple and Meta Platforms go up and down completely randomly.
Pair Corralation between Apple and Meta Platforms
Given the investment horizon of 90 days Apple Inc is expected to generate 0.57 times more return on investment than Meta Platforms. However, Apple Inc is 1.77 times less risky than Meta Platforms. It trades about 0.27 of its potential returns per unit of risk. Meta Platforms is currently generating about 0.02 per unit of risk. If you would invest 26,879 in Apple Inc on September 4, 2025 and sell it today you would earn a total of 1,536 from holding Apple Inc or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Meta Platforms
Performance |
| Timeline |
| Apple Inc |
| Meta Platforms |
Apple and Meta Platforms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Meta Platforms
The main advantage of trading using opposite Apple and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.| Apple vs. Valmie Resources | Apple vs. Ninestar Corp | Apple vs. Dawning Information Industry | Apple vs. Compal Electronics GDR |
| Meta Platforms vs. Geely Automobile Holdings | Meta Platforms vs. Arrow Electronics | Meta Platforms vs. TCL Electronics Holdings | Meta Platforms vs. Commercial Vehicle Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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