Correlation Between Zebra Technologies and Apple
Can any of the company-specific risk be diversified away by investing in both Zebra Technologies 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 Zebra Technologies and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zebra Technologies and Apple Inc, you can compare the effects of market volatilities on Zebra Technologies 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 Zebra Technologies with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zebra Technologies and Apple.
Diversification Opportunities for Zebra Technologies and Apple
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zebra and Apple is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zebra Technologies and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Zebra Technologies 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 Zebra 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 has no effect on the direction of Zebra Technologies i.e., Zebra Technologies and Apple go up and down completely randomly.
Pair Corralation between Zebra Technologies and Apple
Given the investment horizon of 90 days Zebra Technologies is expected to generate 1.51 times more return on investment than Apple. However, Zebra Technologies is 1.51 times more volatile than Apple Inc. It trades about 0.1 of its potential returns per unit of risk. Apple Inc is currently generating about 0.01 per unit of risk. If you would invest 30,100 in Zebra Technologies on February 1, 2024 and sell it today you would earn a total of 1,356 from holding Zebra Technologies or generate 4.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zebra Technologies vs. Apple Inc
Performance |
Timeline |
Zebra Technologies |
Apple Inc |
Zebra Technologies and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zebra Technologies and Apple
The main advantage of trading using opposite Zebra Technologies and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zebra Technologies 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.Zebra Technologies vs. Ubiquiti Networks | Zebra Technologies vs. Viavi Solutions | Zebra Technologies vs. Vislink Technologies | Zebra Technologies vs. DZS Inc |
Check out your portfolio center.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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