Correlation Between Apple and GERATHERM MEDICAL
Can any of the company-specific risk be diversified away by investing in both Apple and GERATHERM MEDICAL 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 GERATHERM MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and GERATHERM MEDICAL, you can compare the effects of market volatilities on Apple and GERATHERM MEDICAL 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 GERATHERM MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and GERATHERM MEDICAL.
Diversification Opportunities for Apple and GERATHERM MEDICAL
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apple and GERATHERM is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and GERATHERM MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GERATHERM MEDICAL 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 GERATHERM MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GERATHERM MEDICAL has no effect on the direction of Apple i.e., Apple and GERATHERM MEDICAL go up and down completely randomly.
Pair Corralation between Apple and GERATHERM MEDICAL
Assuming the 90 days trading horizon Apple is expected to generate 36.16 times less return on investment than GERATHERM MEDICAL. But when comparing it to its historical volatility, Apple Inc is 1.51 times less risky than GERATHERM MEDICAL. It trades about 0.0 of its potential returns per unit of risk. GERATHERM MEDICAL is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 298.00 in GERATHERM MEDICAL on April 25, 2025 and sell it today you would earn a total of 30.00 from holding GERATHERM MEDICAL or generate 10.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Apple Inc vs. GERATHERM MEDICAL
Performance |
Timeline |
Apple Inc |
GERATHERM MEDICAL |
Apple and GERATHERM MEDICAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apple and GERATHERM MEDICAL
The main advantage of trading using opposite Apple and GERATHERM MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, GERATHERM MEDICAL 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 GERATHERM MEDICAL will offset losses from the drop in GERATHERM MEDICAL's long position.Apple vs. DALATA HOTEL | Apple vs. PKSHA TECHNOLOGY INC | Apple vs. Sunstone Hotel Investors | Apple vs. INTERCONT HOTELS |
GERATHERM MEDICAL vs. Apple Inc | GERATHERM MEDICAL vs. Apple Inc | GERATHERM MEDICAL vs. Apple Inc | GERATHERM MEDICAL 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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