Correlation Between Apple and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both Apple and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and AIR PRODCHEMICALS, you can compare the effects of market volatilities on Apple and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and AIR PRODCHEMICALS.
Diversification Opportunities for Apple and AIR PRODCHEMICALS
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and AIR is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS 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 AIR PRODCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR PRODCHEMICALS has no effect on the direction of Apple i.e., Apple and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between Apple and AIR PRODCHEMICALS
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.95 times more return on investment than AIR PRODCHEMICALS. However, Apple Inc is 1.05 times less risky than AIR PRODCHEMICALS. It trades about 0.19 of its potential returns per unit of risk. AIR PRODCHEMICALS is currently generating about -0.14 per unit of risk. If you would invest 19,394 in Apple Inc on September 11, 2025 and sell it today you would earn a total of 4,396 from holding Apple Inc or generate 22.67% 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. AIR PRODCHEMICALS
Performance |
| Timeline |
| Apple Inc |
| AIR PRODCHEMICALS |
Apple and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and AIR PRODCHEMICALS
The main advantage of trading using opposite Apple and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, AIR PRODCHEMICALS 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 AIR PRODCHEMICALS will offset losses from the drop in AIR PRODCHEMICALS's long position.| Apple vs. Microchip Technology Incorporated | Apple vs. BW OFFSHORE LTD | Apple vs. Cognizant Technology Solutions | Apple vs. Host Hotels Resorts |
| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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