Correlation Between Apple and KSB SE
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By analyzing existing cross correlation between Apple Inc and KSB SE Co, you can compare the effects of market volatilities on Apple and KSB SE 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 KSB SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and KSB SE.
Diversification Opportunities for Apple and KSB SE
Modest diversification
The 3 months correlation between Apple and KSB is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and KSB SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSB 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 KSB SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSB SE has no effect on the direction of Apple i.e., Apple and KSB SE go up and down completely randomly.
Pair Corralation between Apple and KSB SE
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the KSB SE. In addition to that, Apple is 1.39 times more volatile than KSB SE Co. It trades about -0.07 of its total potential returns per unit of risk. KSB SE Co is currently generating about 0.13 per unit of volatility. If you would invest 60,600 in KSB SE Co on November 3, 2024 and sell it today you would earn a total of 2,600 from holding KSB SE Co or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apple Inc vs. KSB SE Co
Performance |
| Timeline |
| Apple Inc |
| KSB SE |
Apple and KSB SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and KSB SE
The main advantage of trading using opposite Apple and KSB SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, KSB SE 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 KSB SE will offset losses from the drop in KSB SE's long position.| Apple vs. AGNC INVESTMENT | Apple vs. MGIC INVESTMENT | Apple vs. PennyMac Mortgage Investment | Apple vs. Keck Seng Investments |
| KSB SE vs. HELIOS TECHS INC | KSB SE vs. Sunstone Hotel Investors | KSB SE vs. Park Hotels Resorts | KSB SE vs. Sunny Optical Technology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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