Correlation Between Apple and LEONARDO DRS
Can any of the company-specific risk be diversified away by investing in both Apple and LEONARDO DRS 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 LEONARDO DRS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and LEONARDO DRS INC, you can compare the effects of market volatilities on Apple and LEONARDO DRS 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 LEONARDO DRS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and LEONARDO DRS.
Diversification Opportunities for Apple and LEONARDO DRS
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and LEONARDO is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and LEONARDO DRS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEONARDO DRS INC 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 LEONARDO DRS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEONARDO DRS INC has no effect on the direction of Apple i.e., Apple and LEONARDO DRS go up and down completely randomly.
Pair Corralation between Apple and LEONARDO DRS
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.48 times more return on investment than LEONARDO DRS. However, Apple Inc is 2.08 times less risky than LEONARDO DRS. It trades about 0.16 of its potential returns per unit of risk. LEONARDO DRS INC is currently generating about -0.05 per unit of risk. If you would invest 17,680 in Apple Inc on June 10, 2025 and sell it today you would earn a total of 2,865 from holding Apple Inc or generate 16.2% 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. LEONARDO DRS INC
Performance |
| Timeline |
| Apple Inc |
| LEONARDO DRS INC |
Apple and LEONARDO DRS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and LEONARDO DRS
The main advantage of trading using opposite Apple and LEONARDO DRS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, LEONARDO DRS 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 LEONARDO DRS will offset losses from the drop in LEONARDO DRS's long position.| Apple vs. CNVISION MEDIA | Apple vs. VIVA WINE GROUP | Apple vs. Nexstar Media Group | Apple vs. JD SPORTS FASH |
| LEONARDO DRS vs. Auto Trader Group | LEONARDO DRS vs. THAI BEVERAGE | LEONARDO DRS vs. Collins Foods Limited | LEONARDO DRS vs. H2O Retailing |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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