Correlation Between Apple and VIB Vermgen
Can any of the company-specific risk be diversified away by investing in both Apple and VIB Vermgen 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 VIB Vermgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and VIB Vermgen AG, you can compare the effects of market volatilities on Apple and VIB Vermgen 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 VIB Vermgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and VIB Vermgen.
Diversification Opportunities for Apple and VIB Vermgen
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apple and VIB is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and VIB Vermgen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIB Vermgen AG 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 VIB Vermgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIB Vermgen AG has no effect on the direction of Apple i.e., Apple and VIB Vermgen go up and down completely randomly.
Pair Corralation between Apple and VIB Vermgen
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.63 times more return on investment than VIB Vermgen. However, Apple Inc is 1.59 times less risky than VIB Vermgen. It trades about 0.08 of its potential returns per unit of risk. VIB Vermgen AG is currently generating about -0.04 per unit of risk. If you would invest 13,443 in Apple Inc on September 3, 2024 and sell it today you would earn a total of 8,992 from holding Apple Inc or generate 66.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. VIB Vermgen AG
Performance |
| Timeline |
| Apple Inc |
| VIB Vermgen AG |
Apple and VIB Vermgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and VIB Vermgen
The main advantage of trading using opposite Apple and VIB Vermgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, VIB Vermgen 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 VIB Vermgen will offset losses from the drop in VIB Vermgen's long position.| Apple vs. TRADEDOUBLER AB SK | Apple vs. MARKET VECTR RETAIL | Apple vs. CANON MARKETING JP | Apple vs. Salesforce |
| VIB Vermgen vs. Apple Inc | VIB Vermgen vs. Apple Inc | VIB Vermgen vs. Apple Inc | VIB Vermgen vs. Apple 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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