Correlation Between Apple and Biotech Medics

Can any of the company-specific risk be diversified away by investing in both Apple and Biotech Medics 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 Biotech Medics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apple Inc and Biotech Medics Ne, you can compare the effects of market volatilities on Apple and Biotech Medics 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 Biotech Medics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Biotech Medics.

Diversification Opportunities for Apple and Biotech Medics

-0.72

Correlation Coefficient

Apple  Biotech Medics

Pay attention - limited upside

The 3 months correlation between Apple and Biotech is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Biotech Medics Ne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biotech Medics Ne 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 Biotech Medics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biotech Medics Ne has no effect on the direction of Apple i.e., Apple and Biotech Medics go up and down completely randomly.

Pair Corralation between Apple and Biotech Medics

Given the investment horizon of 90 days Apple Inc is expected to generate 0.11 times more return on investment than Biotech Medics. However, Apple Inc is 9.4 times less risky than Biotech Medics. It trades about 0.2 of its potential returns per unit of risk. Biotech Medics Ne is currently generating about 0.02 per unit of risk. If you would invest  21,391  in Apple Inc on July 23, 2025 and sell it today you would earn a total of  4,833  from holding Apple Inc or generate 22.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Apple Inc  vs.  Biotech Medics Ne

Apple Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Apple disclosed solid returns over the last few months and may actually be approaching a breakup point.

Biotech Medics Ne

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Biotech Medics Ne are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Biotech Medics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and Biotech Medics

The main advantage of trading using opposite Apple and Biotech Medics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Biotech Medics 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 Biotech Medics will offset losses from the drop in Biotech Medics' long position.

The idea behind Apple Inc and Biotech Medics Ne 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.