Correlation Between Apple and Forgame Holdings
Can any of the company-specific risk be diversified away by investing in both Apple and Forgame Holdings 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 Forgame Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Forgame Holdings, you can compare the effects of market volatilities on Apple and Forgame Holdings 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 Forgame Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Forgame Holdings.
Diversification Opportunities for Apple and Forgame Holdings
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Forgame is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Forgame Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forgame Holdings 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 Forgame Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forgame Holdings has no effect on the direction of Apple i.e., Apple and Forgame Holdings go up and down completely randomly.
Pair Corralation between Apple and Forgame Holdings
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.72 times more return on investment than Forgame Holdings. However, Apple Inc is 1.38 times less risky than Forgame Holdings. It trades about 0.17 of its potential returns per unit of risk. Forgame Holdings is currently generating about 0.0 per unit of risk. If you would invest 19,307 in Apple Inc on August 21, 2025 and sell it today you would earn a total of 3,883 from holding Apple Inc or generate 20.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Forgame Holdings
Performance |
| Timeline |
| Apple Inc |
| Forgame Holdings |
Apple and Forgame Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Forgame Holdings
The main advantage of trading using opposite Apple and Forgame Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Forgame Holdings 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 Forgame Holdings will offset losses from the drop in Forgame Holdings' long position.| Apple vs. Cardinal Health | Apple vs. Bumrungrad Hospital Public | Apple vs. Ryman Healthcare Limited | Apple vs. Garofalo Health Care |
| Forgame Holdings vs. Apple Inc | Forgame Holdings vs. Apple Inc | Forgame Holdings vs. Apple Inc | Forgame Holdings 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |