Correlation Between Apple and Informatica Inc

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

Diversification Opportunities for Apple and Informatica Inc

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between Apple and Informatica is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Informatica Inc Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Informatica Inc 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 Informatica Inc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Informatica Inc has no effect on the direction of Apple i.e., Apple and Informatica Inc go up and down completely randomly.

Pair Corralation between Apple and Informatica Inc

Given the investment horizon of 90 days Apple Inc is expected to generate 1.01 times more return on investment than Informatica Inc. However, Apple is 1.01 times more volatile than Informatica Inc Cl. It trades about -0.15 of its potential returns per unit of risk. Informatica Inc Cl is currently generating about -0.25 per unit of risk. If you would invest  16,138  in Apple Inc on June 29, 2022 and sell it today you would lose (1,061)  from holding Apple Inc or give up 6.57% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  Informatica Inc Cl

 Performance (%) 
       Timeline  
Apple Inc 
Apple Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 6 (%) 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 October 2022.

Apple Price Channel

Informatica Inc 
Informatica Performance
0 of 100
Over the last 90 days Informatica Inc Cl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Informatica Inc is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Informatica Price Channel

Apple and Informatica Inc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and Informatica Inc

The main advantage of trading using opposite Apple and Informatica Inc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Informatica Inc 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 Informatica Inc will offset losses from the drop in Informatica Inc's long position.
Apple vs. Kibush Capital Corp
The idea behind Apple Inc and Informatica Inc Cl 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.
Informatica Inc vs. Apple Inc
Informatica Inc vs. Kibush Capital Corp
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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