Pair Correlation Between Sprint and Apple

This module allows you to analyze existing cross correlation between Sprint Corporation and Apple Inc. You can compare the effects of market volatilities on Sprint 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 Sprint with a short position of Apple. See also your portfolio center. Please also check ongoing floating volatility patterns of Sprint and Apple.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Sprint Corp.  vs   Apple Inc.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 2.3 times more return on investment than Apple. However, Sprint is 2.3 times more volatile than Apple Inc. It trades about 0.24 of its potential returns per unit of risk. Apple Inc is currently generating about -0.02 per unit of risk. If you would invest  848.00  in Sprint Corporation on March 29, 2017 and sell it today you would earn a total of  55.00  from holding Sprint Corporation or generate 6.49% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Sprint and Apple
0.46

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Sprint Corp. and Apple Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Sprint 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 Sprint 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 Sprint i.e. Sprint and Apple go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

Sprint

  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.

Apple Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions.