Correlation Between Apple CDR and HealWELL

Can any of the company-specific risk be diversified away by investing in both Apple CDR and HealWELL 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 CDR and HealWELL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apple CDR and HealWELL AI, you can compare the effects of market volatilities on Apple CDR and HealWELL 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 CDR with a short position of HealWELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple CDR and HealWELL.

Diversification Opportunities for Apple CDR and HealWELL

0.46

Correlation Coefficient

Apple CDR  HealWELL

Very weak diversification

The 3 months correlation between Apple and HealWELL is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apple CDR and HealWELL AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HealWELL AI and Apple CDR 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 CDR are associated (or correlated) with HealWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HealWELL AI has no effect on the direction of Apple CDR i.e., Apple CDR and HealWELL go up and down completely randomly.

Pair Corralation between Apple CDR and HealWELL

Assuming the 90 days trading horizon Apple CDR is expected to generate 2.53 times less return on investment than HealWELL. But when comparing it to its historical volatility, Apple CDR is 2.26 times less risky than HealWELL. It trades about 0.06 of its potential returns per unit of risk. HealWELL AI is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  129.00  in HealWELL AI on April 22, 2025 and sell it today you would earn a total of  15.00  from holding HealWELL AI or generate 11.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Apple CDR  vs.  HealWELL AI

Apple CDR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apple CDR are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Apple CDR is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

HealWELL AI

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HealWELL AI are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, HealWELL displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple CDR and HealWELL

The main advantage of trading using opposite Apple CDR and HealWELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple CDR position performs unexpectedly, HealWELL 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 HealWELL will offset losses from the drop in HealWELL's long position.

The idea behind Apple CDR and HealWELL AI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.