Correlation Between Apple and Adecco Group
Can any of the company-specific risk be diversified away by investing in both Apple and Adecco Group 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 Adecco Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Adecco Group AG, you can compare the effects of market volatilities on Apple and Adecco Group 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 Adecco Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Adecco Group.
Diversification Opportunities for Apple and Adecco Group
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and Adecco is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Adecco Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adecco Group 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 Adecco Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adecco Group AG has no effect on the direction of Apple i.e., Apple and Adecco Group go up and down completely randomly.
Pair Corralation between Apple and Adecco Group
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.79 times more return on investment than Adecco Group. However, Apple Inc is 1.26 times less risky than Adecco Group. It trades about 0.1 of its potential returns per unit of risk. Adecco Group AG is currently generating about 0.0 per unit of risk. If you would invest 12,124 in Apple Inc on September 3, 2024 and sell it today you would earn a total of 10,686 from holding Apple Inc or generate 88.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Apple Inc vs. Adecco Group AG
Performance |
| Timeline |
| Apple Inc |
| Adecco Group AG |
Apple and Adecco Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Adecco Group
The main advantage of trading using opposite Apple and Adecco Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Adecco Group 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 Adecco Group will offset losses from the drop in Adecco Group's long position.| Apple vs. TITANIUM TRANSPORTGROUP | Apple vs. NTG Nordic Transport | Apple vs. Electronic Arts | Apple vs. LG Electronics |
| Adecco Group vs. Eastman Chemical | Adecco Group vs. CarsalesCom | Adecco Group vs. CODERE ONLINE LUX | Adecco Group vs. BOS BETTER ONLINE |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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