Correlation Between Apple and PEH WERTPAPIER
Can any of the company-specific risk be diversified away by investing in both Apple and PEH WERTPAPIER 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 PEH WERTPAPIER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and PEH WERTPAPIER, you can compare the effects of market volatilities on Apple and PEH WERTPAPIER 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 PEH WERTPAPIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and PEH WERTPAPIER.
Diversification Opportunities for Apple and PEH WERTPAPIER
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and PEH is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and PEH WERTPAPIER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEH WERTPAPIER 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 PEH WERTPAPIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEH WERTPAPIER has no effect on the direction of Apple i.e., Apple and PEH WERTPAPIER go up and down completely randomly.
Pair Corralation between Apple and PEH WERTPAPIER
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.32 times more return on investment than PEH WERTPAPIER. However, Apple is 1.32 times more volatile than PEH WERTPAPIER. It trades about 0.39 of its potential returns per unit of risk. PEH WERTPAPIER is currently generating about -0.2 per unit of risk. If you would invest 20,475 in Apple Inc on September 2, 2024 and sell it today you would earn a total of 1,975 from holding Apple Inc or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. PEH WERTPAPIER
Performance |
| Timeline |
| Apple Inc |
| PEH WERTPAPIER |
Apple and PEH WERTPAPIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and PEH WERTPAPIER
The main advantage of trading using opposite Apple and PEH WERTPAPIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, PEH WERTPAPIER 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 PEH WERTPAPIER will offset losses from the drop in PEH WERTPAPIER's long position.| Apple vs. Sunstone Hotel Investors | Apple vs. Choice Hotels International | Apple vs. Luckin Coffee | Apple vs. Summit Hotel Properties |
| PEH WERTPAPIER vs. SCIENCE IN SPORT | PEH WERTPAPIER vs. NTG Nordic Transport | PEH WERTPAPIER vs. Sporttotal AG | PEH WERTPAPIER vs. PKSHA TECHNOLOGY INC |
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.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |