Correlation Between East Africa and Apple CDR
Can any of the company-specific risk be diversified away by investing in both East Africa and Apple CDR 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 East Africa and Apple CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Africa Metals and Apple CDR, you can compare the effects of market volatilities on East Africa and Apple CDR 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 East Africa with a short position of Apple CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Africa and Apple CDR.
Diversification Opportunities for East Africa and Apple CDR
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between East and Apple is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding East Africa Metals and Apple CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple CDR and East Africa 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 East Africa Metals are associated (or correlated) with Apple CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple CDR has no effect on the direction of East Africa i.e., East Africa and Apple CDR go up and down completely randomly.
Pair Corralation between East Africa and Apple CDR
Assuming the 90 days horizon East Africa Metals is expected to under-perform the Apple CDR. In addition to that, East Africa is 3.25 times more volatile than Apple CDR. It trades about -0.07 of its total potential returns per unit of risk. Apple CDR is currently generating about 0.18 per unit of volatility. If you would invest 3,372 in Apple CDR on September 9, 2025 and sell it today you would earn a total of 619.00 from holding Apple CDR or generate 18.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Africa Metals vs. Apple CDR
Performance |
| Timeline |
| East Africa Metals |
| Apple CDR |
East Africa and Apple CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Africa and Apple CDR
The main advantage of trading using opposite East Africa and Apple CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Africa position performs unexpectedly, Apple CDR 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 Apple CDR will offset losses from the drop in Apple CDR's long position.| East Africa vs. Ngx Energy International | East Africa vs. Pine Cliff Energy | East Africa vs. Calfrac Well Services | East Africa vs. Journey Energy |
| Apple CDR vs. iA Financial | Apple CDR vs. E L Financial Corp | Apple CDR vs. Brookfield Office Properties | Apple CDR vs. Manulife Financial Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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