Correlation Between Apple and INDO ACIDATAMA

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

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

Diversification Opportunities for Apple and INDO ACIDATAMA

0.16

Correlation Coefficient

Apple  INDO ACIDATAMA

Average diversification

The 3 months correlation between Apple and INDO is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and INDO ACIDATAMA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDO ACIDATAMA 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 INDO ACIDATAMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDO ACIDATAMA has no effect on the direction of Apple i.e., Apple and INDO ACIDATAMA go up and down completely randomly.

Pair Corralation between Apple and INDO ACIDATAMA

Assuming the 90 days trading horizon Apple is expected to generate 3.04 times less return on investment than INDO ACIDATAMA. But when comparing it to its historical volatility, Apple Inc is 4.56 times less risky than INDO ACIDATAMA. It trades about 0.05 of its potential returns per unit of risk. INDO ACIDATAMA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  0.15  in INDO ACIDATAMA on April 20, 2025 and sell it today you would earn a total of  0.00  from holding INDO ACIDATAMA or generate 0.0% 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.  INDO ACIDATAMA

Apple Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Apple is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

INDO ACIDATAMA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in INDO ACIDATAMA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, INDO ACIDATAMA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and INDO ACIDATAMA

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

The idea behind Apple Inc and INDO ACIDATAMA 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.