AAPL—● CONNECTING
● diversify — the names least correlated with your holding
What diversifies AAPL?
The names in a liquid mega-cap universe with the lowest return correlation to AAPL, from ~2 years of real daily returns — its best diversifiers. A negative correlation means the name has tended to move opposite AAPL. Real-only: a name without a real correlation is left out, never given a fabricated 0.
AAPL19 of 19 ranked
| Name | Correlation | Recent (63d) | β on AAPL |
|---|---|---|---|
| UNH | -0.01 | -0.14 | -0.01 |
| NFLX | +0.10 | +0.10 | 0.02 |
| KO | +0.11 | +0.07 | 0.17 |
| XOM | +0.17 | -0.17 | 0.19 |
| PEP | +0.18 | +0.27 | 0.24 |
| INTC | +0.20 | -0.04 | 0.08 |
| CVX | +0.23 | -0.15 | 0.27 |
| WMT | +0.26 | +0.09 | 0.31 |
Pearson correlation of daily log-returns over ~2 years (and a recent 63-day window), ranked ascending — the least correlated first. AAPL is excluded (a name correlates 1.00 with itself). β on AAPL is how the name has moved per 1 move in AAPL. Correlation is unitless in [-1, 1]. Your decisions, your risk.