Correlation Between Apple and Gamehost
Can any of the company-specific risk be diversified away by investing in both Apple and Gamehost 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 Gamehost into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc CDR and Gamehost, you can compare the effects of market volatilities on Apple and Gamehost 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 Gamehost. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Gamehost.
Diversification Opportunities for Apple and Gamehost
Average diversification
The 3 months correlation between Apple and Gamehost is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Gamehost in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamehost 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 CDR are associated (or correlated) with Gamehost. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamehost has no effect on the direction of Apple i.e., Apple and Gamehost go up and down completely randomly.
Pair Corralation between Apple and Gamehost
Assuming the 90 days trading horizon Apple is expected to generate 2.61 times less return on investment than Gamehost. In addition to that, Apple is 1.7 times more volatile than Gamehost. It trades about 0.09 of its total potential returns per unit of risk. Gamehost is currently generating about 0.41 per unit of volatility. If you would invest 978.00 in Gamehost on April 20, 2025 and sell it today you would earn a total of 260.00 from holding Gamehost or generate 26.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Apple Inc CDR vs. Gamehost
Performance |
Timeline |
Apple Inc CDR |
Gamehost |
Apple and Gamehost Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apple and Gamehost
The main advantage of trading using opposite Apple and Gamehost positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Gamehost 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 Gamehost will offset losses from the drop in Gamehost's long position.Apple vs. TUT Fitness Group | Apple vs. Leveljump Healthcare Corp | Apple vs. Ocumetics Technology Corp | Apple vs. HPQ Silicon Resources |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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