Correlation Between Apple and CREDIT AGRICOLE
Can any of the company-specific risk be diversified away by investing in both Apple and CREDIT AGRICOLE 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 CREDIT AGRICOLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and CREDIT AGRICOLE, you can compare the effects of market volatilities on Apple and CREDIT AGRICOLE 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 CREDIT AGRICOLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and CREDIT AGRICOLE.
Diversification Opportunities for Apple and CREDIT AGRICOLE
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and CREDIT is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and CREDIT AGRICOLE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREDIT AGRICOLE 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 CREDIT AGRICOLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREDIT AGRICOLE has no effect on the direction of Apple i.e., Apple and CREDIT AGRICOLE go up and down completely randomly.
Pair Corralation between Apple and CREDIT AGRICOLE
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.12 times more return on investment than CREDIT AGRICOLE. However, Apple is 1.12 times more volatile than CREDIT AGRICOLE. It trades about 0.07 of its potential returns per unit of risk. CREDIT AGRICOLE is currently generating about 0.08 per unit of risk. If you would invest 13,765 in Apple Inc on August 24, 2024 and sell it today you would earn a total of 8,310 from holding Apple Inc or generate 60.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. CREDIT AGRICOLE
Performance |
| Timeline |
| Apple Inc |
| CREDIT AGRICOLE |
Apple and CREDIT AGRICOLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and CREDIT AGRICOLE
The main advantage of trading using opposite Apple and CREDIT AGRICOLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, CREDIT AGRICOLE 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 CREDIT AGRICOLE will offset losses from the drop in CREDIT AGRICOLE's long position.| Apple vs. FUYO GENERAL LEASE | Apple vs. United Rentals | Apple vs. Qurate Retail Series | Apple vs. National Retail Properties |
| CREDIT AGRICOLE vs. Perseus Mining Limited | CREDIT AGRICOLE vs. SERI INDUSTRIAL EO | CREDIT AGRICOLE vs. GREENX METALS LTD | CREDIT AGRICOLE vs. XLMedia PLC |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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