Correlation Between Apple and Sibanye Stillwater
Can any of the company-specific risk be diversified away by investing in both Apple and Sibanye Stillwater 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 Sibanye Stillwater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Sibanye Stillwater Limited, you can compare the effects of market volatilities on Apple and Sibanye Stillwater 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 Sibanye Stillwater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Sibanye Stillwater.
Diversification Opportunities for Apple and Sibanye Stillwater
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Sibanye is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Sibanye Stillwater Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sibanye Stillwater 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 Sibanye Stillwater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sibanye Stillwater has no effect on the direction of Apple i.e., Apple and Sibanye Stillwater go up and down completely randomly.
Pair Corralation between Apple and Sibanye Stillwater
Given the investment horizon of 90 days Apple Inc is expected to under-perform the Sibanye Stillwater. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 2.78 times less risky than Sibanye Stillwater. The stock trades about -0.39 of its potential returns per unit of risk. The Sibanye Stillwater Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 84.00 in Sibanye Stillwater Limited on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Sibanye Stillwater Limited or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Apple Inc vs. Sibanye Stillwater Limited
Performance |
| Timeline |
| Apple Inc |
| Sibanye Stillwater |
Apple and Sibanye Stillwater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Sibanye Stillwater
The main advantage of trading using opposite Apple and Sibanye Stillwater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Sibanye Stillwater 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 Sibanye Stillwater will offset losses from the drop in Sibanye Stillwater's long position.The idea behind Apple Inc and Sibanye Stillwater Limited 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.| Sibanye Stillwater vs. FUYO GENERAL LEASE | Sibanye Stillwater vs. CarsalesCom | Sibanye Stillwater vs. CARSALESCOM | Sibanye Stillwater vs. Motorcar Parts of |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |