Correlation Between Apple and Takkt AG
Can any of the company-specific risk be diversified away by investing in both Apple and Takkt AG 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 Takkt AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Takkt AG, you can compare the effects of market volatilities on Apple and Takkt AG 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 Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Takkt AG.
Diversification Opportunities for Apple and Takkt AG
Very good diversification
The 3 months correlation between Apple and Takkt is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG 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 Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of Apple i.e., Apple and Takkt AG go up and down completely randomly.
Pair Corralation between Apple and Takkt AG
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.35 times more return on investment than Takkt AG. However, Apple is 1.35 times more volatile than Takkt AG. It trades about 0.19 of its potential returns per unit of risk. Takkt AG is currently generating about -0.5 per unit of risk. If you would invest 21,199 in Apple Inc on August 31, 2024 and sell it today you would earn a total of 1,201 from holding Apple Inc or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Apple Inc vs. Takkt AG
Performance |
| Timeline |
| Apple Inc |
| Takkt AG |
Apple and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Takkt AG
The main advantage of trading using opposite Apple and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.| Apple vs. Magic Software Enterprises | Apple vs. ASURE SOFTWARE | Apple vs. USWE SPORTS AB | Apple vs. SPORTING |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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