Correlation Between Apple and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both Apple and Komercni Banka 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 Komercni Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Komercni Banka, you can compare the effects of market volatilities on Apple and Komercni Banka 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 Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Komercni Banka.
Diversification Opportunities for Apple and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka 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 Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of Apple i.e., Apple and Komercni Banka go up and down completely randomly.
Pair Corralation between Apple and Komercni Banka
Assuming the 90 days trading horizon Apple Inc is expected to generate 269.92 times more return on investment than Komercni Banka. However, Apple is 269.92 times more volatile than Komercni Banka. It trades about 0.04 of its potential returns per unit of risk. Komercni Banka is currently generating about 0.05 per unit of risk. If you would invest 19,319 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 5,231 from holding Apple Inc or generate 27.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Apple Inc vs. Komercni Banka
Performance |
| Timeline |
| Apple Inc |
| Komercni Banka |
Apple and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Komercni Banka
The main advantage of trading using opposite Apple and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| Apple vs. Komercni Banka | Apple vs. Pentair PLC | Apple vs. Skandinaviska Enskilda Banken | Apple vs. Finnair Oyj |
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Check out your portfolio center.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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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