Correlation Between TCL Electronics and Apple

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

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

Diversification Opportunities for TCL Electronics and Apple

0.03

Correlation Coefficient

TCL Electronics  Apple

Significant diversification

The 3 months correlation between TCL and Apple is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding TCL Electronics Holdings and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and TCL Electronics 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 TCL Electronics Holdings 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 TCL Electronics i.e., TCL Electronics and Apple go up and down completely randomly.

Pair Corralation between TCL Electronics and Apple

Assuming the 90 days horizon TCL Electronics Holdings is expected to generate 12.82 times more return on investment than Apple. However, TCL Electronics is 12.82 times more volatile than Apple Inc. It trades about 0.11 of its potential returns per unit of risk. Apple Inc is currently generating about 0.1 per unit of risk. If you would invest  98.00  in TCL Electronics Holdings on May 11, 2025 and sell it today you would earn a total of  27.00  from holding TCL Electronics Holdings or generate 27.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

TCL Electronics Holdings  vs.  Apple Inc

TCL Electronics Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in TCL Electronics Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, TCL Electronics reported solid returns over the last few months and may actually be approaching a breakup point.

Apple Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with TCL Electronics and Apple

The main advantage of trading using opposite TCL Electronics and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TCL Electronics 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.

The idea behind TCL Electronics Holdings 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .