Correlation Between Apple and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Apple and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on Apple and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and EIDESVIK OFFSHORE.
Diversification Opportunities for Apple and EIDESVIK OFFSHORE
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and EIDESVIK is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of Apple i.e., Apple and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between Apple and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon Apple is expected to generate 1.36 times less return on investment than EIDESVIK OFFSHORE. But when comparing it to its historical volatility, Apple Inc is 2.18 times less risky than EIDESVIK OFFSHORE. It trades about 0.07 of its potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 67.00 in EIDESVIK OFFSHORE NK on September 3, 2024 and sell it today you would earn a total of 43.00 from holding EIDESVIK OFFSHORE NK or generate 64.18% 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. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| Apple Inc |
| EIDESVIK OFFSHORE |
Apple and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and EIDESVIK OFFSHORE
The main advantage of trading using opposite Apple and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| Apple vs. TITANIUM TRANSPORTGROUP | Apple vs. NTG Nordic Transport | Apple vs. Electronic Arts | Apple vs. LG Electronics |
| EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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