Correlation Between APERAM REG and Apple
Can any of the company-specific risk be diversified away by investing in both APERAM REG 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 APERAM REG and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APERAM REG and Apple Inc, you can compare the effects of market volatilities on APERAM REG 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 APERAM REG with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of APERAM REG and Apple.
Diversification Opportunities for APERAM REG and Apple
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APERAM and Apple is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding APERAM REG and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and APERAM REG 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 APERAM REG 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 APERAM REG i.e., APERAM REG and Apple go up and down completely randomly.
Pair Corralation between APERAM REG and Apple
Assuming the 90 days trading horizon APERAM REG is expected to generate 20.13 times less return on investment than Apple. In addition to that, APERAM REG is 1.19 times more volatile than Apple Inc. It trades about 0.0 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.1 per unit of volatility. If you would invest 12,003 in Apple Inc on August 31, 2024 and sell it today you would earn a total of 10,432 from holding Apple Inc or generate 86.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APERAM REG vs. Apple Inc
Performance |
| Timeline |
| APERAM REG |
| Apple Inc |
APERAM REG and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APERAM REG and Apple
The main advantage of trading using opposite APERAM REG and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APERAM REG 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.| APERAM REG vs. ECHO INVESTMENT ZY | APERAM REG vs. SLR Investment Corp | APERAM REG vs. WisdomTree Investments | APERAM REG vs. PennantPark Investment |
| Apple vs. NTG Nordic Transport | Apple vs. COPLAND ROAD CAPITAL | Apple vs. SBA Communications Corp | Apple vs. T Mobile |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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