Correlation Between Apple and Wacker Neuson
Can any of the company-specific risk be diversified away by investing in both Apple and Wacker Neuson 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 Wacker Neuson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Wacker Neuson SE, you can compare the effects of market volatilities on Apple and Wacker Neuson 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 Wacker Neuson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Wacker Neuson.
Diversification Opportunities for Apple and Wacker Neuson
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Wacker is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Wacker Neuson SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wacker Neuson SE 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 Wacker Neuson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wacker Neuson SE has no effect on the direction of Apple i.e., Apple and Wacker Neuson go up and down completely randomly.
Pair Corralation between Apple and Wacker Neuson
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.45 times more return on investment than Wacker Neuson. However, Apple Inc is 2.21 times less risky than Wacker Neuson. It trades about 0.61 of its potential returns per unit of risk. Wacker Neuson SE is currently generating about 0.14 per unit of risk. If you would invest 21,135 in Apple Inc on September 13, 2024 and sell it today you would earn a total of 2,640 from holding Apple Inc or generate 12.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apple Inc vs. Wacker Neuson SE
Performance |
| Timeline |
| Apple Inc |
| Wacker Neuson SE |
Apple and Wacker Neuson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Wacker Neuson
The main advantage of trading using opposite Apple and Wacker Neuson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Wacker Neuson 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 Wacker Neuson will offset losses from the drop in Wacker Neuson's long position.| Apple vs. Perma Fix Environmental Services | Apple vs. MITSUBISHI STEEL MFG | Apple vs. ALGOMA STEEL GROUP | Apple vs. Aegean Airlines SA |
| Wacker Neuson vs. Apple Inc | Wacker Neuson vs. Apple Inc | Wacker Neuson vs. Apple Inc | Wacker Neuson 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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