Correlation Between Apple and TechnipFMC Plc
Can any of the company-specific risk be diversified away by investing in both Apple and TechnipFMC Plc 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 TechnipFMC Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and TechnipFMC plc, you can compare the effects of market volatilities on Apple and TechnipFMC Plc 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 TechnipFMC Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and TechnipFMC Plc.
Diversification Opportunities for Apple and TechnipFMC Plc
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apple and TechnipFMC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and TechnipFMC plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnipFMC plc 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 TechnipFMC Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnipFMC plc has no effect on the direction of Apple i.e., Apple and TechnipFMC Plc go up and down completely randomly.
Pair Corralation between Apple and TechnipFMC Plc
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the TechnipFMC Plc. In addition to that, Apple is 1.49 times more volatile than TechnipFMC plc. It trades about -0.2 of its total potential returns per unit of risk. TechnipFMC plc is currently generating about -0.14 per unit of volatility. If you would invest 19,079 in TechnipFMC plc on November 4, 2024 and sell it today you would lose (699.00) from holding TechnipFMC plc or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Apple Inc vs. TechnipFMC plc
Performance |
| Timeline |
| Apple Inc |
| TechnipFMC plc |
Apple and TechnipFMC Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and TechnipFMC Plc
The main advantage of trading using opposite Apple and TechnipFMC Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, TechnipFMC Plc 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 TechnipFMC Plc will offset losses from the drop in TechnipFMC Plc's long position.| Apple vs. Fresenius Medical Care | Apple vs. Chunghwa Telecom Co, | Apple vs. Zoom Video Communications | Apple vs. Mitsubishi UFJ Financial |
| TechnipFMC Plc vs. Micron Technology | TechnipFMC Plc vs. Fresenius Medical Care | TechnipFMC Plc vs. Globus Medical, | TechnipFMC Plc vs. Take Two Interactive Software |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |