Correlation Between Apple and Ambipar Participaes

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

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

Diversification Opportunities for Apple and Ambipar Participaes

-0.47

Correlation Coefficient

Apple  Ambipar Participaes

Very good diversification

The 3 months correlation between Apple and Ambipar is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Ambipar Participaes e in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambipar Participaes 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 Ambipar Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambipar Participaes has no effect on the direction of Apple i.e., Apple and Ambipar Participaes go up and down completely randomly.

Pair Corralation between Apple and Ambipar Participaes

Assuming the 90 days trading horizon Apple is expected to generate 2.02 times less return on investment than Ambipar Participaes. But when comparing it to its historical volatility, Apple Inc is 2.8 times less risky than Ambipar Participaes. It trades about 0.05 of its potential returns per unit of risk. Ambipar Participaes e is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  13,651  in Ambipar Participaes e on April 20, 2025 and sell it today you would earn a total of  528.00  from holding Ambipar Participaes e or generate 3.87% return on investment over 90 days.

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

Apple Inc  vs.  Ambipar Participaes e

Apple Inc

Risk-Adjusted Performance

Insignificant

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 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.

Ambipar Participaes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ambipar Participaes e are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ambipar Participaes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Apple and Ambipar Participaes

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

The idea behind Apple Inc and Ambipar Participaes e 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.

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.