Correlation Between Apple and Stag Industrial

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

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

Diversification Opportunities for Apple and Stag Industrial

0.04

Correlation Coefficient

Apple  Stag Industrial

Significant diversification

The 3 months correlation between Apple and Stag is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Stag Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stag Industrial 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 Stag Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stag Industrial has no effect on the direction of Apple i.e., Apple and Stag Industrial go up and down completely randomly.

Pair Corralation between Apple and Stag Industrial

Assuming the 90 days trading horizon Apple is expected to generate 1.74 times less return on investment than Stag Industrial. In addition to that, Apple is 1.15 times more volatile than Stag Industrial. It trades about 0.05 of its total potential returns per unit of risk. Stag Industrial is currently generating about 0.09 per unit of volatility. If you would invest  2,814  in Stag Industrial on April 20, 2025 and sell it today you would earn a total of  232.00  from holding Stag Industrial or generate 8.24% return on investment over 90 days.

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

Apple Inc  vs.  Stag Industrial

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 fundamental indicators, Apple is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Stag Industrial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stag Industrial are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Stag Industrial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Apple and Stag Industrial

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

The idea behind Apple Inc and Stag Industrial 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 CEOs Directory module to screen CEOs from public companies around the world.