Correlation Between Apple and M U
Can any of the company-specific risk be diversified away by investing in both Apple and M U 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 M U into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and M U T Dusseldorf, you can compare the effects of market volatilities on Apple and M U 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 M U. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and M U.
Diversification Opportunities for Apple and M U
Pay attention - limited upside
The 3 months correlation between Apple and M7U is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and M U T Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M U T 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 M U. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M U T has no effect on the direction of Apple i.e., Apple and M U go up and down completely randomly.
Pair Corralation between Apple and M U
If you would invest 20,306 in Apple Inc on November 2, 2024 and sell it today you would earn a total of 2,609 from holding Apple Inc or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
Apple Inc vs. M U T Dusseldorf
Performance |
| Timeline |
| Apple Inc |
| M U T |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Apple and M U Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and M U
The main advantage of trading using opposite Apple and M U positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, M U 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 M U will offset losses from the drop in M U's long position.| Apple vs. AGNC INVESTMENT | Apple vs. MGIC INVESTMENT | Apple vs. PennyMac Mortgage Investment | Apple vs. Keck Seng Investments |
| M U vs. ASURE SOFTWARE | M U vs. Nanjing Panda Electronics | M U vs. PKSHA TECHNOLOGY INC | M U vs. Easy Software AG |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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