Correlation Between Apple and Kepler Weber
Can any of the company-specific risk be diversified away by investing in both Apple and Kepler Weber 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 Kepler Weber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Kepler Weber SA, you can compare the effects of market volatilities on Apple and Kepler Weber 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 Kepler Weber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Kepler Weber.
Diversification Opportunities for Apple and Kepler Weber
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Kepler is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Kepler Weber SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kepler Weber SA 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 Kepler Weber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kepler Weber SA has no effect on the direction of Apple i.e., Apple and Kepler Weber go up and down completely randomly.
Pair Corralation between Apple and Kepler Weber
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.44 times more return on investment than Kepler Weber. However, Apple Inc is 2.25 times less risky than Kepler Weber. It trades about 0.33 of its potential returns per unit of risk. Kepler Weber SA is currently generating about -0.01 per unit of risk. If you would invest 6,597 in Apple Inc on September 1, 2024 and sell it today you would earn a total of 523.00 from holding Apple Inc or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Kepler Weber SA
Performance |
| Timeline |
| Apple Inc |
| Kepler Weber SA |
Apple and Kepler Weber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Kepler Weber
The main advantage of trading using opposite Apple and Kepler Weber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Kepler Weber 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 Kepler Weber will offset losses from the drop in Kepler Weber's long position.| Apple vs. Brpr Corporate Offices | Apple vs. Ross Stores | Apple vs. NXP Semiconductors NV | Apple vs. Mangels Industrial SA |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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