Correlation Between Apple and Airgain

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Can any of the company-specific risk be diversified away by investing in both Apple and Airgain 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 Apple and Airgain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Airgain, you can compare the effects of market volatilities on Apple and Airgain 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 Apple with a short position of Airgain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Airgain.

Diversification Opportunities for Apple and Airgain

0.08
  Correlation Coefficient

Significant diversification

The 3 months correlation between Apple and Airgain is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain and Apple 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 Apple Inc are associated (or correlated) with Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of Apple i.e., Apple and Airgain go up and down completely randomly.

Pair Corralation between Apple and Airgain

Given the investment horizon of 90 days Apple Inc is expected to under-perform the Airgain. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.44 times less risky than Airgain. The stock trades about -0.26 of its potential returns per unit of risk. The Airgain is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  757.00  in Airgain on July 3, 2022 and sell it today you would lose (36.00)  from holding Airgain or give up 4.76% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  Airgain

 Performance (%) 
       Timeline  
Apple Inc 
Apple Performance
0 of 100
Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, Apple is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Apple Price Channel

Airgain 
Airgain Performance
0 of 100
Over the last 90 days Airgain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Airgain Price Channel

Apple and Airgain Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and Airgain

The main advantage of trading using opposite Apple and Airgain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Airgain 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 Airgain will offset losses from the drop in Airgain's long position.
Apple vs. Amazon Inc
The idea behind Apple Inc and Airgain 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.
Airgain vs. Amazon 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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