Correlation Between Airbus SE and Apple
Can any of the company-specific risk be diversified away by investing in both Airbus SE 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 Airbus SE and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbus SE and Apple Inc, you can compare the effects of market volatilities on Airbus SE 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 Airbus SE with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus SE and Apple.
Diversification Opportunities for Airbus SE and Apple
Very weak diversification
The 3 months correlation between Airbus and Apple is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Airbus SE and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Airbus SE 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 Airbus SE 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 Airbus SE i.e., Airbus SE and Apple go up and down completely randomly.
Pair Corralation between Airbus SE and Apple
Assuming the 90 days trading horizon Airbus SE is expected to generate 0.47 times more return on investment than Apple. However, Airbus SE is 2.13 times less risky than Apple. It trades about 0.24 of its potential returns per unit of risk. Apple Inc is currently generating about -0.07 per unit of risk. If you would invest 15,918 in Airbus SE on November 2, 2024 and sell it today you would earn a total of 744.00 from holding Airbus SE or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbus SE vs. Apple Inc
Performance |
| Timeline |
| Airbus SE |
| Apple Inc |
Airbus SE and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus SE and Apple
The main advantage of trading using opposite Airbus SE and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus SE 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.| Airbus SE vs. Dairy Farm International | Airbus SE vs. FARM 51 GROUP | Airbus SE vs. SOFI TECHNOLOGIES | Airbus SE vs. North American Construction |
| Apple vs. Dalata Hotel Group | Apple vs. GEELY AUTOMOBILE | Apple vs. Grupo Carso SAB | Apple vs. INTERCONT HOTELS |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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