Correlation Between Apple and MFA FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Apple and MFA FINANCIAL 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 MFA FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and MFA FINANCIAL NEW, you can compare the effects of market volatilities on Apple and MFA FINANCIAL 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 MFA FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and MFA FINANCIAL.
Diversification Opportunities for Apple and MFA FINANCIAL
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apple and MFA is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and MFA FINANCIAL NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA FINANCIAL NEW 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 MFA FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA FINANCIAL NEW has no effect on the direction of Apple i.e., Apple and MFA FINANCIAL go up and down completely randomly.
Pair Corralation between Apple and MFA FINANCIAL
Assuming the 90 days trading horizon Apple is expected to generate 3.37 times less return on investment than MFA FINANCIAL. In addition to that, Apple is 1.13 times more volatile than MFA FINANCIAL NEW. It trades about 0.0 of its total potential returns per unit of risk. MFA FINANCIAL NEW is currently generating about 0.02 per unit of volatility. If you would invest 791.00 in MFA FINANCIAL NEW on April 24, 2025 and sell it today you would earn a total of 6.00 from holding MFA FINANCIAL NEW or generate 0.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Apple Inc vs. MFA FINANCIAL NEW
Performance |
Timeline |
Apple Inc |
MFA FINANCIAL NEW |
Apple and MFA FINANCIAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apple and MFA FINANCIAL
The main advantage of trading using opposite Apple and MFA FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, MFA FINANCIAL 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 MFA FINANCIAL will offset losses from the drop in MFA FINANCIAL's long position.Apple vs. Iridium Communications | Apple vs. FIH MOBILE | Apple vs. SWISS WATER DECAFFCOFFEE | Apple vs. Ultra Clean Holdings |
MFA FINANCIAL vs. Apple Inc | MFA FINANCIAL vs. Apple Inc | MFA FINANCIAL vs. Apple Inc | MFA FINANCIAL vs. Apple Inc |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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