Correlation Between Apple and IBU-tec Advanced

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

By analyzing existing cross correlation between Apple Inc and IBU tec advanced materials, you can compare the effects of market volatilities on Apple and IBU-tec Advanced 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 IBU-tec Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and IBU-tec Advanced.

Diversification Opportunities for Apple and IBU-tec Advanced

0.0

Correlation Coefficient

Apple  IBU-tec Advanced

Pay attention - limited upside

The 3 months correlation between Apple and IBU-tec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and IBU tec advanced materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBU tec advanced 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 IBU-tec Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBU tec advanced has no effect on the direction of Apple i.e., Apple and IBU-tec Advanced go up and down completely randomly.

Pair Corralation between Apple and IBU-tec Advanced

Assuming the 90 days trading horizon Apple is expected to generate 80.91 times less return on investment than IBU-tec Advanced. But when comparing it to its historical volatility, Apple Inc is 2.43 times less risky than IBU-tec Advanced. It trades about 0.0 of its potential returns per unit of risk. IBU tec advanced materials is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  564.00  in IBU tec advanced materials on April 25, 2025 and sell it today you would earn a total of  252.00  from holding IBU tec advanced materials or generate 44.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Apple Inc  vs.  IBU tec advanced materials

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Apple is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

IBU tec advanced

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in IBU tec advanced materials are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, IBU-tec Advanced unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and IBU-tec Advanced

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

The idea behind Apple Inc and IBU tec advanced materials 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.