Correlation Between Apple and Focus Home
Can any of the company-specific risk be diversified away by investing in both Apple and Focus Home 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 Focus Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Focus Home Interactive, you can compare the effects of market volatilities on Apple and Focus Home 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 Focus Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Focus Home.
Diversification Opportunities for Apple and Focus Home
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Focus is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Focus Home Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Home Interactive 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 Focus Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Home Interactive has no effect on the direction of Apple i.e., Apple and Focus Home go up and down completely randomly.
Pair Corralation between Apple and Focus Home
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.5 times more return on investment than Focus Home. However, Apple Inc is 1.99 times less risky than Focus Home. It trades about 0.19 of its potential returns per unit of risk. Focus Home Interactive is currently generating about -0.1 per unit of risk. If you would invest 19,771 in Apple Inc on August 17, 2025 and sell it today you would earn a total of 3,849 from holding Apple Inc or generate 19.47% 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. Focus Home Interactive
Performance |
| Timeline |
| Apple Inc |
| Focus Home Interactive |
Apple and Focus Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Focus Home
The main advantage of trading using opposite Apple and Focus Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Focus Home 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 Focus Home will offset losses from the drop in Focus Home's long position.The idea behind Apple Inc and Focus Home Interactive pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Focus Home vs. Elmos Semiconductor SE | Focus Home vs. Gladstone Investment | Focus Home vs. ON SEMICONDUCTOR | Focus Home vs. REINET INVESTMENTS SCA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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