Correlation Between D Box and Apple

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

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

Diversification Opportunities for D Box and Apple

0.19

Correlation Coefficient

D Box  Apple

Average diversification

The 3 months correlation between DBO and Apple is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding D Box Technologies and Apple Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc CDR and D Box 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 D Box Technologies are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc CDR has no effect on the direction of D Box i.e., D Box and Apple go up and down completely randomly.

Pair Corralation between D Box and Apple

Assuming the 90 days trading horizon D Box Technologies is expected to generate 3.81 times more return on investment than Apple. However, D Box is 3.81 times more volatile than Apple Inc CDR. It trades about 0.24 of its potential returns per unit of risk. Apple Inc CDR is currently generating about 0.03 per unit of risk. If you would invest  15.00  in D Box Technologies on April 24, 2025 and sell it today you would earn a total of  17.00  from holding D Box Technologies or generate 113.33% return on investment over 90 days.

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

D Box Technologies  vs.  Apple Inc CDR

D Box Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in D Box Technologies are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, D Box displayed solid returns over the last few months and may actually be approaching a breakup point.

Apple Inc CDR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc CDR are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Apple is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with D Box and Apple

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

The idea behind D Box Technologies and Apple Inc 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..