Correlation Between Apple and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both Apple and Fiskars Oyj 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 Fiskars Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Fiskars Oyj Abp, you can compare the effects of market volatilities on Apple and Fiskars Oyj 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 Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Fiskars Oyj.
Diversification Opportunities for Apple and Fiskars Oyj
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Fiskars is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp 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 Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of Apple i.e., Apple and Fiskars Oyj go up and down completely randomly.
Pair Corralation between Apple and Fiskars Oyj
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the Fiskars Oyj. In addition to that, Apple is 1.47 times more volatile than Fiskars Oyj Abp. It trades about -0.07 of its total potential returns per unit of risk. Fiskars Oyj Abp is currently generating about 0.02 per unit of volatility. If you would invest 1,474 in Fiskars Oyj Abp on November 2, 2024 and sell it today you would earn a total of 8.00 from holding Fiskars Oyj Abp or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Apple Inc vs. Fiskars Oyj Abp
Performance |
| Timeline |
| Apple Inc |
| Fiskars Oyj Abp |
Apple and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Fiskars Oyj
The main advantage of trading using opposite Apple and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Fiskars Oyj 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj's long position.| Apple vs. Dalata Hotel Group | Apple vs. GEELY AUTOMOBILE | Apple vs. Grupo Carso SAB | Apple vs. INTERCONT HOTELS |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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