Correlation Between Agfa Gevaert and Apple
Can any of the company-specific risk be diversified away by investing in both Agfa Gevaert 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 Agfa Gevaert and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agfa Gevaert NV and Apple Inc, you can compare the effects of market volatilities on Agfa Gevaert 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 Agfa Gevaert with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agfa Gevaert and Apple.
Diversification Opportunities for Agfa Gevaert and Apple
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agfa and Apple is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Agfa Gevaert NV and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Agfa Gevaert 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 Agfa Gevaert NV 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 Agfa Gevaert i.e., Agfa Gevaert and Apple go up and down completely randomly.
Pair Corralation between Agfa Gevaert and Apple
Assuming the 90 days horizon Agfa Gevaert NV is expected to under-perform the Apple. In addition to that, Agfa Gevaert is 11.24 times more volatile than Apple Inc. It trades about -0.21 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.66 per unit of volatility. If you would invest 22,423 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 2,354 from holding Apple Inc or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agfa Gevaert NV vs. Apple Inc
Performance |
| Timeline |
| Agfa Gevaert NV |
| Apple Inc |
Agfa Gevaert and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agfa Gevaert and Apple
The main advantage of trading using opposite Agfa Gevaert and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agfa Gevaert 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.| Agfa Gevaert vs. Enerpac Tool Group | Agfa Gevaert vs. Omega Flex | Agfa Gevaert vs. Luxfer Holdings PLC | Agfa Gevaert vs. Gorman Rupp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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