Correlation Between Apple and CIG PANNONIA
Can any of the company-specific risk be diversified away by investing in both Apple and CIG PANNONIA 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 CIG PANNONIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and CIG PANNONIA LIFE, you can compare the effects of market volatilities on Apple and CIG PANNONIA 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 CIG PANNONIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and CIG PANNONIA.
Diversification Opportunities for Apple and CIG PANNONIA
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apple and CIG is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and CIG PANNONIA LIFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG PANNONIA LIFE 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 CIG PANNONIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG PANNONIA LIFE has no effect on the direction of Apple i.e., Apple and CIG PANNONIA go up and down completely randomly.
Pair Corralation between Apple and CIG PANNONIA
Given the investment horizon of 90 days Apple Inc is expected to under-perform the CIG PANNONIA. In addition to that, Apple is 1.04 times more volatile than CIG PANNONIA LIFE. It trades about -0.39 of its total potential returns per unit of risk. CIG PANNONIA LIFE is currently generating about 0.54 per unit of volatility. If you would invest 84.00 in CIG PANNONIA LIFE on October 24, 2024 and sell it today you would earn a total of 12.00 from holding CIG PANNONIA LIFE or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. CIG PANNONIA LIFE
Performance |
| Timeline |
| Apple Inc |
| CIG PANNONIA LIFE |
Apple and CIG PANNONIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and CIG PANNONIA
The main advantage of trading using opposite Apple and CIG PANNONIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, CIG PANNONIA 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 CIG PANNONIA will offset losses from the drop in CIG PANNONIA's long position.The idea behind Apple Inc and CIG PANNONIA LIFE 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.| CIG PANNONIA vs. AUTO TRADER ADR | CIG PANNONIA vs. Indutrade AB | CIG PANNONIA vs. Tradegate AG Wertpapierhandelsbank | CIG PANNONIA vs. MeVis Medical Solutions |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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