Correlation Between Apple and Agrogalaxy Participacoes

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

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

Diversification Opportunities for Apple and Agrogalaxy Participacoes

0.01

Correlation Coefficient

Apple  Agrogalaxy Participacoes

Significant diversification

The 3 months correlation between Apple and Agrogalaxy is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Agrogalaxy Participacoes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrogalaxy Participacoes 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 Agrogalaxy Participacoes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrogalaxy Participacoes has no effect on the direction of Apple i.e., Apple and Agrogalaxy Participacoes go up and down completely randomly.

Pair Corralation between Apple and Agrogalaxy Participacoes

Assuming the 90 days trading horizon Apple Inc is expected to generate 0.23 times more return on investment than Agrogalaxy Participacoes. However, Apple Inc is 4.34 times less risky than Agrogalaxy Participacoes. It trades about 0.02 of its potential returns per unit of risk. Agrogalaxy Participacoes SA is currently generating about -0.02 per unit of risk. If you would invest  5,888  in Apple Inc on April 24, 2025 and sell it today you would earn a total of  87.00  from holding Apple Inc or generate 1.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Apple Inc  vs.  Agrogalaxy Participacoes SA

Apple Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Apple is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Agrogalaxy Participacoes

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agrogalaxy Participacoes SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Apple and Agrogalaxy Participacoes

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

The idea behind Apple Inc and Agrogalaxy Participacoes SA 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.