Correlation Between Apple and Turtle Beach

By analyzing existing cross correlation between Apple Inc and Turtle Beach you can compare the effects of market volatilities on Apple and Turtle Beach 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 Turtle Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Turtle Beach.

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Can any of the company-specific risk be diversified away by investing in both Apple and Turtle Beach at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Apple and Turtle Beach into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Apple and Turtle Beach

0.81
Correlation
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Very poor diversification

The 3 months correlation between Apple and Turtle is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Turtle Beach Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Turtle Beach 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 Turtle Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turtle Beach has no effect on the direction of Apple i.e. Apple and Turtle Beach go up and down completely randomly.

Pair Corralation between Apple and Turtle Beach

Given the investment horizon of 30 days, Apple is expected to generate 4.35 times less return on investment than Turtle Beach. But when comparing it to its historical volatility, Apple Inc is 1.64 times less risky than Turtle Beach. It trades about 0.06 of its potential returns per unit of risk. Turtle Beach is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  646.00  in Turtle Beach on May 2, 2020 and sell it today you would earn a total of  412.00  from holding Turtle Beach or generate 63.78% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  Turtle Beach Corp.

 Performance (%) 
      Timeline 
Apple Inc 
33

Apple Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.
Turtle Beach 
1010

Turtle Beach Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Turtle Beach are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Turtle Beach reported solid returns over the last few months and may actually be approaching a breakup point.

Apple and Turtle Beach Volatility Contrast

 Predicted Return Density 
      Returns 
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