This module allows you to analyze existing cross correlation between International Business Machines Corporation and Apple Inc. You can compare the effects of market volatilities on International Business 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 International Business with a short position of Apple. See also your portfolio center
. Please also check ongoing floating volatility patterns of International Business
International Business Machine vs Apple Inc.
Considering 30-days investment horizon, International Business Machines Corporation is expected to under-perform the Apple. In addition to that, International Business is 2.04 times more volatile than Apple Inc. It trades about -0.33 of its total potential returns per unit of risk. Apple Inc is currently generating about -0.02 per unit of volatility. If you would invest 14,412 in Apple Inc on March 29, 2017 and sell it today you would lose (33.00) from holding Apple Inc or give up 0.23% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Apple Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and International Business 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 International Business Machines Corporation 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 has no effect on the direction of International Business i.e. International Business and Apple go up and down completely randomly.
Over the last 30 days International Business Machines Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions.