Module 07 · AAPL risk

The Apple left tail, measured two ways.

Historical VaR from eight annual returns is a small-sample confession. Parametric VaR uses the live-blended σ.

Annual σ

27.1%

blend · annual μ + live realized σ

S0

$313.45

Live tape

Hist. 95% VaR

26.9%

One-year

CVaR 95%

26.9%

Expected shortfall

Workbook correlation

Hover a cell.

RevenueNetGrossServicesOp.EPSPrice
Revenue
Net income
Gross margin
Services
Op. income
EPS
Price

Recomputed from the AAPL prints

Hover a cell.

RevenueNetGrossServicesOp.EPSPrice
Revenue
Net income
Gross margin
Services
Op. income
EPS
Price

Services versus the stock is the series to watch in the matrix. If you only watch the rest of the mix, you are watching the wrong line.

Value at risk

MetricValueNote
Historical VaR 90%26.9%Empirical percentile, n=7 returns
Historical VaR 95%26.9%Thin tail sample
CVaR 95%26.9%Mean of the worst 5%
CVaR 99%26.9%Mean of the worst 1%
Parametric VaR 90%6.4%Normal, live σ
Parametric VaR 95%16.2%Normal, live σ
Parametric VaR 99%34.7%Normal, live σ
Drift μ28.3%Mean log-return, 10-K
Live daily σ18.4%Annualized from the open feed
$1M dollar VaR 95%$268,581Position sizing

Diagnostics (workbook)

TestStatpReading
Shapiro–Wilk0.9100.395Cannot reject normality
Jarque–Bera0.8030.669Cannot reject normality
Kolmogorov–Smirnov0.2100.861Cannot reject normality
Lag-1 autocorrelation0.088Low serial dependence
Hurst exponent0.500Random-walk-like at annual frequency

AAPL Bayesian revenue

Apple · 95% credible interval

20262027202820292030$707B