Correlation Between Duck Creek and Apple

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

Diversification Opportunities for Duck Creek and Apple

-0.05
  Correlation Coefficient

Good diversification

The 1 month correlation between Duck Creek and Apple is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Duck Creek Technologies and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Duck Creek 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 Duck Creek 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 Duck Creek i.e., Duck Creek and Apple go up and down completely randomly.

Pair Corralation between Duck Creek and Apple

Considering the 90-day investment horizon Duck Creek Technologies is expected to under-perform the Apple. In addition to that, Duck Creek is 1.73 times more volatile than Apple Inc. It trades about -0.07 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.03 per unit of volatility. If you would invest  11,760  in Apple Inc on July 8, 2022 and sell it today you would earn a total of  2,783  from holding Apple Inc or generate 23.66% return on investment over 90 days.
Time Period1 Month [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Duck Creek Technologies  vs.  Apple Inc

 Performance (%) 
       Timeline  
Duck Creek Technologies 
Duck Creek Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Duck Creek Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, Duck Creek may actually be approaching a critical reversion point that can send shares even higher in November 2022.

Duck Creek Price Channel

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 conflicting performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in November 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Apple Price Channel

Duck Creek and Apple Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Duck Creek and Apple

The main advantage of trading using opposite Duck Creek and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duck Creek 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.
Duck Creek vs. Microsoft Corp
The idea behind Duck Creek Technologies and Apple Inc 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.
Apple 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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