Correlation Between Apple and Sporttotal
Can any of the company-specific risk be diversified away by investing in both Apple and Sporttotal 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 Sporttotal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Sporttotal AG, you can compare the effects of market volatilities on Apple and Sporttotal 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 Sporttotal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Sporttotal.
Diversification Opportunities for Apple and Sporttotal
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Sporttotal is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Sporttotal AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporttotal 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 Sporttotal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporttotal AG has no effect on the direction of Apple i.e., Apple and Sporttotal go up and down completely randomly.
Pair Corralation between Apple and Sporttotal
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.19 times more return on investment than Sporttotal. However, Apple Inc is 5.34 times less risky than Sporttotal. It trades about 0.14 of its potential returns per unit of risk. Sporttotal AG is currently generating about 0.02 per unit of risk. If you would invest 21,245 in Apple Inc on August 25, 2024 and sell it today you would earn a total of 830.00 from holding Apple Inc or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Sporttotal AG
Performance |
| Timeline |
| Apple Inc |
| Sporttotal AG |
Apple and Sporttotal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Sporttotal
The main advantage of trading using opposite Apple and Sporttotal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Sporttotal 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 Sporttotal will offset losses from the drop in Sporttotal's long position.| Apple vs. Perdoceo Education | Apple vs. UNITED UTILITIES GR | Apple vs. Federal Agricultural Mortgage | Apple vs. North American Construction |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |