Correlation Between Apple and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both Apple and CEWE Stiftung 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 CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and CEWE Stiftung Co, you can compare the effects of market volatilities on Apple and CEWE Stiftung 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 CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and CEWE Stiftung.
Diversification Opportunities for Apple and CEWE Stiftung
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and CEWE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung 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 CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of Apple i.e., Apple and CEWE Stiftung go up and down completely randomly.
Pair Corralation between Apple and CEWE Stiftung
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.63 times more return on investment than CEWE Stiftung. However, Apple Inc is 1.59 times less risky than CEWE Stiftung. It trades about 0.66 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about -0.03 per unit of risk. If you would invest 20,820 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 2,955 from holding Apple Inc or generate 14.19% 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. CEWE Stiftung Co
Performance |
| Timeline |
| Apple Inc |
| CEWE Stiftung |
Apple and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and CEWE Stiftung
The main advantage of trading using opposite Apple and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| Apple vs. Molson Coors Beverage | Apple vs. FARO Technologies | Apple vs. BOSTON BEER A | Apple vs. ORMAT TECHNOLOGIES |
| CEWE Stiftung vs. MTI WIRELESS EDGE | CEWE Stiftung vs. Darden Restaurants | CEWE Stiftung vs. INTERSHOP Communications Aktiengesellschaft | CEWE Stiftung vs. BJs Restaurants |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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