Correlation Between Carmat SA and Apple
Can any of the company-specific risk be diversified away by investing in both Carmat SA and Apple 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 Carmat SA and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and Apple Inc, you can compare the effects of market volatilities on Carmat SA and Apple 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 Carmat SA with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and Apple.
Diversification Opportunities for Carmat SA and Apple
Excellent diversification
The 3 months correlation between Carmat and Apple is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Carmat SA 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 Carmat SA are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Carmat SA i.e., Carmat SA and Apple go up and down completely randomly.
Pair Corralation between Carmat SA and Apple
Assuming the 90 days horizon Carmat SA is expected to under-perform the Apple. In addition to that, Carmat SA is 2.91 times more volatile than Apple Inc. It trades about -0.31 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.05 per unit of volatility. If you would invest 21,629 in Apple Inc on August 24, 2024 and sell it today you would earn a total of 266.00 from holding Apple Inc or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Carmat SA vs. Apple Inc
Performance |
| Timeline |
| Carmat SA |
| Apple Inc |
Carmat SA and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and Apple
The main advantage of trading using opposite Carmat SA and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Carmat SA vs. Intuitive Surgical | Carmat SA vs. HOYA Corporation | Carmat SA vs. Superior Plus Corp | Carmat SA vs. NMI Holdings |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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