Correlation Between Apple and AMAG Austria
Can any of the company-specific risk be diversified away by investing in both Apple and AMAG Austria 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 AMAG Austria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and AMAG Austria Metall, you can compare the effects of market volatilities on Apple and AMAG Austria 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 AMAG Austria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and AMAG Austria.
Diversification Opportunities for Apple and AMAG Austria
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apple and AMAG is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall 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 AMAG Austria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG Austria Metall has no effect on the direction of Apple i.e., Apple and AMAG Austria go up and down completely randomly.
Pair Corralation between Apple and AMAG Austria
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the AMAG Austria. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.28 times less risky than AMAG Austria. The stock trades about -0.06 of its potential returns per unit of risk. The AMAG Austria Metall is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,240 in AMAG Austria Metall on October 26, 2024 and sell it today you would earn a total of 120.00 from holding AMAG Austria Metall or generate 5.36% 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. AMAG Austria Metall
Performance |
| Timeline |
| Apple Inc |
| AMAG Austria Metall |
Apple and AMAG Austria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and AMAG Austria
The main advantage of trading using opposite Apple and AMAG Austria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, AMAG Austria 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 AMAG Austria will offset losses from the drop in AMAG Austria's long position.| Apple vs. BOS BETTER ONLINE | Apple vs. CarsalesCom | Apple vs. FUYO GENERAL LEASE | Apple vs. United Rentals |
| AMAG Austria vs. Apple Inc | AMAG Austria vs. Apple Inc | AMAG Austria vs. Apple Inc | AMAG Austria 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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