Correlation Between Apple and Fresenius
Can any of the company-specific risk be diversified away by investing in both Apple and Fresenius 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 Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Fresenius SE Co, you can compare the effects of market volatilities on Apple and Fresenius 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 Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Fresenius.
Diversification Opportunities for Apple and Fresenius
Very good diversification
The 3 months correlation between Apple and Fresenius is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE 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 Fresenius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius SE has no effect on the direction of Apple i.e., Apple and Fresenius go up and down completely randomly.
Pair Corralation between Apple and Fresenius
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.8 times more return on investment than Fresenius. However, Apple Inc is 1.26 times less risky than Fresenius. It trades about 0.28 of its potential returns per unit of risk. Fresenius SE Co is currently generating about 0.01 per unit of risk. If you would invest 20,895 in Apple Inc on September 1, 2024 and sell it today you would earn a total of 1,555 from holding Apple Inc or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apple Inc vs. Fresenius SE Co
Performance |
| Timeline |
| Apple Inc |
| Fresenius SE |
Apple and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Fresenius
The main advantage of trading using opposite Apple and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Fresenius 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 Fresenius will offset losses from the drop in Fresenius' long position.| Apple vs. Sumitomo Rubber Industries | Apple vs. Rayonier Advanced Materials | Apple vs. EAGLE MATERIALS | Apple vs. NEWELL RUBBERMAID |
| Fresenius vs. Richter Gedeon Vegyszeti | Fresenius vs. Charoen Pokphand Foods | Fresenius vs. Superior Plus Corp | Fresenius vs. Origin Agritech |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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