Correlation Between Crescita Therapeutics and Apple CDR

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

By analyzing existing cross correlation between Crescita Therapeutics and Apple CDR, you can compare the effects of market volatilities on Crescita Therapeutics and Apple CDR 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 Crescita Therapeutics with a short position of Apple CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescita Therapeutics and Apple CDR.

Diversification Opportunities for Crescita Therapeutics and Apple CDR

-0.12

Correlation Coefficient

Crescita Therapeutics  Apple CDR

Good diversification

The 3 months correlation between Crescita and Apple is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Crescita Therapeutics and Apple CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple CDR and Crescita Therapeutics 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 Crescita Therapeutics are associated (or correlated) with Apple CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple CDR has no effect on the direction of Crescita Therapeutics i.e., Crescita Therapeutics and Apple CDR go up and down completely randomly.

Pair Corralation between Crescita Therapeutics and Apple CDR

Assuming the 90 days trading horizon Crescita Therapeutics is expected to under-perform the Apple CDR. In addition to that, Crescita Therapeutics is 1.75 times more volatile than Apple CDR. It trades about -0.11 of its total potential returns per unit of risk. Apple CDR is currently generating about 0.03 per unit of volatility. If you would invest  3,026  in Apple CDR on April 24, 2025 and sell it today you would earn a total of  72.00  from holding Apple CDR or generate 2.38% return on investment over 90 days.

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

Crescita Therapeutics  vs.  Apple CDR

Crescita Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Crescita Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Apple CDR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apple CDR are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Apple CDR is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Crescita Therapeutics and Apple CDR

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

The idea behind Crescita Therapeutics and Apple CDR 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.