Correlation Between Apple and SCHALTBAU HOLDING
Can any of the company-specific risk be diversified away by investing in both Apple and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and SCHALTBAU HOLDING, you can compare the effects of market volatilities on Apple and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and SCHALTBAU HOLDING.
Diversification Opportunities for Apple and SCHALTBAU HOLDING
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apple and SCHALTBAU is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SCHALTBAU HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHALTBAU HOLDING 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 SCHALTBAU HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHALTBAU HOLDING has no effect on the direction of Apple i.e., Apple and SCHALTBAU HOLDING go up and down completely randomly.
Pair Corralation between Apple and SCHALTBAU HOLDING
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.41 times more return on investment than SCHALTBAU HOLDING. However, Apple is 1.41 times more volatile than SCHALTBAU HOLDING. It trades about 0.08 of its potential returns per unit of risk. SCHALTBAU HOLDING is currently generating about 0.01 per unit of risk. If you would invest 20,365 in Apple Inc on November 2, 2024 and sell it today you would earn a total of 2,550 from holding Apple Inc or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Apple Inc vs. SCHALTBAU HOLDING
Performance |
| Timeline |
| Apple Inc |
| SCHALTBAU HOLDING |
Apple and SCHALTBAU HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and SCHALTBAU HOLDING
The main advantage of trading using opposite Apple and SCHALTBAU HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, SCHALTBAU HOLDING 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 SCHALTBAU HOLDING will offset losses from the drop in SCHALTBAU HOLDING's long position.| Apple vs. RCS MediaGroup SpA | Apple vs. Nexstar Media Group | Apple vs. PARKEN Sport Entertainment | Apple vs. SALESFORCE INC CDR |
| SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING vs. Apple Inc | SCHALTBAU HOLDING 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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