Correlation Between Apple and SPAREBK 1
Can any of the company-specific risk be diversified away by investing in both Apple and SPAREBK 1 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 SPAREBK 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and SPAREBK 1 NORD NORGE, you can compare the effects of market volatilities on Apple and SPAREBK 1 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 SPAREBK 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and SPAREBK 1.
Diversification Opportunities for Apple and SPAREBK 1
Weak diversification
The 3 months correlation between Apple and SPAREBK is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SPAREBK 1 NORD NORGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPAREBK 1 NORD 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 SPAREBK 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPAREBK 1 NORD has no effect on the direction of Apple i.e., Apple and SPAREBK 1 go up and down completely randomly.
Pair Corralation between Apple and SPAREBK 1
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the SPAREBK 1. In addition to that, Apple is 2.08 times more volatile than SPAREBK 1 NORD NORGE. It trades about -0.11 of its total potential returns per unit of risk. SPAREBK 1 NORD NORGE is currently generating about 0.31 per unit of volatility. If you would invest 1,033 in SPAREBK 1 NORD NORGE on November 2, 2024 and sell it today you would earn a total of 71.00 from holding SPAREBK 1 NORD NORGE or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. SPAREBK 1 NORD NORGE
Performance |
| Timeline |
| Apple Inc |
| SPAREBK 1 NORD |
Apple and SPAREBK 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and SPAREBK 1
The main advantage of trading using opposite Apple and SPAREBK 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, SPAREBK 1 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 SPAREBK 1 will offset losses from the drop in SPAREBK 1's long position.| Apple vs. China Communications Services | Apple vs. China Datang | Apple vs. HUTCHISON TELECOMM | Apple vs. Spirent Communications plc |
| SPAREBK 1 vs. MCEWEN MINING INC | SPAREBK 1 vs. FIREWEED METALS P | SPAREBK 1 vs. SERI INDUSTRIAL EO | SPAREBK 1 vs. Zijin Mining Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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