Correlation Between Apple and TELLUSGRUPPEN
Can any of the company-specific risk be diversified away by investing in both Apple and TELLUSGRUPPEN 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 TELLUSGRUPPEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and TELLUSGRUPPEN AB, you can compare the effects of market volatilities on Apple and TELLUSGRUPPEN 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 TELLUSGRUPPEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and TELLUSGRUPPEN.
Diversification Opportunities for Apple and TELLUSGRUPPEN
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and TELLUSGRUPPEN is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and TELLUSGRUPPEN AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELLUSGRUPPEN AB 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 TELLUSGRUPPEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELLUSGRUPPEN AB has no effect on the direction of Apple i.e., Apple and TELLUSGRUPPEN go up and down completely randomly.
Pair Corralation between Apple and TELLUSGRUPPEN
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.42 times more return on investment than TELLUSGRUPPEN. However, Apple Inc is 2.39 times less risky than TELLUSGRUPPEN. It trades about 0.09 of its potential returns per unit of risk. TELLUSGRUPPEN AB is currently generating about 0.01 per unit of risk. If you would invest 17,793 in Apple Inc on September 14, 2024 and sell it today you would earn a total of 5,897 from holding Apple Inc or generate 33.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. TELLUSGRUPPEN AB
Performance |
| Timeline |
| Apple Inc |
| TELLUSGRUPPEN AB |
Apple and TELLUSGRUPPEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and TELLUSGRUPPEN
The main advantage of trading using opposite Apple and TELLUSGRUPPEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, TELLUSGRUPPEN 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 TELLUSGRUPPEN will offset losses from the drop in TELLUSGRUPPEN's long position.| Apple vs. ADRIATIC METALS LS 013355 | Apple vs. Perseus Mining Limited | Apple vs. SEALED AIR | Apple vs. SIMS METAL MGT |
| TELLUSGRUPPEN vs. Apple Inc | TELLUSGRUPPEN vs. Apple Inc | TELLUSGRUPPEN vs. Apple Inc | TELLUSGRUPPEN 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |