Correlation Between Apple and Doubleverify Holdings

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

Diversification Opportunities for Apple and Doubleverify Holdings

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between Apple and Doubleverify is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Doubleverify Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleverify Holdings 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 Doubleverify Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleverify Holdings has no effect on the direction of Apple i.e., Apple and Doubleverify Holdings go up and down completely randomly.

Pair Corralation between Apple and Doubleverify Holdings

Given the investment horizon of 90 days Apple Inc is expected to generate 0.51 times more return on investment than Doubleverify Holdings. However, Apple Inc is 1.95 times less risky than Doubleverify Holdings. It trades about 0.39 of its potential returns per unit of risk. Doubleverify Holdings is currently generating about 0.18 per unit of risk. If you would invest  14,467  in Apple Inc on May 10, 2022 and sell it today you would earn a total of  2,020  from holding Apple Inc or generate 13.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  Doubleverify Holdings

 Performance (%) 
       Timeline  
Apple Inc 
Apple Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in September 2022.

Apple Price Channel

Doubleverify Holdings 
Doubleverify Performance
13 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Doubleverify Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Doubleverify Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Doubleverify Price Channel

Apple and Doubleverify Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and Doubleverify Holdings

The main advantage of trading using opposite Apple and Doubleverify Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Doubleverify Holdings 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 Doubleverify Holdings will offset losses from the drop in Doubleverify Holdings' long position.
The idea behind Apple Inc and Doubleverify Holdings 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.
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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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