Correlation Between Apple Rush and Protext Mobility

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

By analyzing existing cross correlation between Apple Rush and Protext Mobility, you can compare the effects of market volatilities on Apple Rush and Protext Mobility 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 Rush with a short position of Protext Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple Rush and Protext Mobility.

Diversification Opportunities for Apple Rush and Protext Mobility

-0.44

Correlation Coefficient

Apple Rush  Protext Mobility

Very good diversification

The 3 months correlation between Apple and Protext is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Apple Rush and Protext Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protext Mobility and Apple Rush 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 Rush are associated (or correlated) with Protext Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protext Mobility has no effect on the direction of Apple Rush i.e., Apple Rush and Protext Mobility go up and down completely randomly.

Pair Corralation between Apple Rush and Protext Mobility

Given the investment horizon of 90 days Apple Rush is expected to under-perform the Protext Mobility. In addition to that, Apple Rush is 2.84 times more volatile than Protext Mobility. It trades about -0.15 of its total potential returns per unit of risk. Protext Mobility is currently generating about -0.1 per unit of volatility. If you would invest  0.50  in Protext Mobility on May 5, 2025 and sell it today you would lose (0.06) from holding Protext Mobility or give up 12.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Apple Rush  vs.  Protext Mobility

Apple Rush

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Rush has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, Apple Rush may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Protext Mobility

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Protext Mobility are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Protext Mobility displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple Rush and Protext Mobility

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

The idea behind Apple Rush and Protext Mobility 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.