Correlation Between Apple and Fielmann Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Apple and Fielmann Aktiengesellscha 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 Fielmann Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Fielmann Aktiengesellschaft, you can compare the effects of market volatilities on Apple and Fielmann Aktiengesellscha 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 Fielmann Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Fielmann Aktiengesellscha.
Diversification Opportunities for Apple and Fielmann Aktiengesellscha
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Fielmann is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Fielmann Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fielmann Aktiengesellscha 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 Fielmann Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fielmann Aktiengesellscha has no effect on the direction of Apple i.e., Apple and Fielmann Aktiengesellscha go up and down completely randomly.
Pair Corralation between Apple and Fielmann Aktiengesellscha
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.2 times more return on investment than Fielmann Aktiengesellscha. However, Apple is 1.2 times more volatile than Fielmann Aktiengesellschaft. It trades about 0.45 of its potential returns per unit of risk. Fielmann Aktiengesellschaft is currently generating about -0.39 per unit of risk. If you would invest 20,311 in Apple Inc on September 3, 2024 and sell it today you would earn a total of 2,139 from holding Apple Inc or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Fielmann Aktiengesellschaft
Performance |
| Timeline |
| Apple Inc |
| Fielmann Aktiengesellscha |
Apple and Fielmann Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Fielmann Aktiengesellscha
The main advantage of trading using opposite Apple and Fielmann Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Fielmann Aktiengesellscha 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 Fielmann Aktiengesellscha will offset losses from the drop in Fielmann Aktiengesellscha's long position.| Apple vs. Citic Telecom International | Apple vs. Grupo Carso SAB | Apple vs. GEELY AUTOMOBILE | Apple vs. Entravision Communications |
| Fielmann Aktiengesellscha vs. PLAY2CHILL SA ZY | Fielmann Aktiengesellscha vs. Dalata Hotel Group | Fielmann Aktiengesellscha vs. Columbia Sportswear | Fielmann Aktiengesellscha vs. Playtech plc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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