Correlation Between SVB Financial and APA
Can any of the company-specific risk be diversified away by investing in both SVB Financial and APA 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 SVB Financial and APA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVB Financial Group and APA Corporation, you can compare the effects of market volatilities on SVB Financial and APA 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 SVB Financial with a short position of APA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and APA.
Diversification Opportunities for SVB Financial and APA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and APA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group and APA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APA Corporation and SVB Financial 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 SVB Financial Group are associated (or correlated) with APA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APA Corporation has no effect on the direction of SVB Financial i.e., SVB Financial and APA go up and down completely randomly.
Pair Corralation between SVB Financial and APA
If you would invest 12,007 in SVB Financial Group on August 27, 2024 and sell it today you would earn a total of 0.00 from holding SVB Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 62.54% |
| Values | Daily Returns |
SVB Financial Group vs. APA Corp.
Performance |
| Timeline |
| SVB Financial Group |
| APA Corporation |
SVB Financial and APA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB Financial and APA
The main advantage of trading using opposite SVB Financial and APA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB Financial position performs unexpectedly, APA 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 APA will offset losses from the drop in APA's long position.| SVB Financial vs. Fras le SA | SVB Financial vs. Clave Indices De | SVB Financial vs. BTG Pactual Logstica | SVB Financial vs. Telefonaktiebolaget LM Ericsson |
| APA vs. Micron Technology | APA vs. Unifique Telecomunicaes SA | APA vs. Align Technology | APA vs. Bemobi Mobile Tech |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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