Correlation Between Sto SE and Apple
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By analyzing existing cross correlation between Sto SE Co and Apple Inc, you can compare the effects of market volatilities on Sto SE 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 Sto SE with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sto SE and Apple.
Diversification Opportunities for Sto SE and Apple
Excellent diversification
The 3 months correlation between Sto and Apple is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sto SE Co and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Sto SE 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 Sto SE Co 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 Sto SE i.e., Sto SE and Apple go up and down completely randomly.
Pair Corralation between Sto SE and Apple
Assuming the 90 days trading horizon Sto SE Co is expected to under-perform the Apple. In addition to that, Sto SE is 2.01 times more volatile than Apple Inc. It trades about -0.26 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.6 per unit of volatility. If you would invest 20,880 in Apple Inc on September 12, 2024 and sell it today you would earn a total of 2,835 from holding Apple Inc or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sto SE Co vs. Apple Inc
Performance |
| Timeline |
| Sto SE |
| Apple Inc |
Sto SE and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sto SE and Apple
The main advantage of trading using opposite Sto SE and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sto SE 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.| Sto SE vs. Guidewire Software | Sto SE vs. China Resources Beer | Sto SE vs. Check Point Software | Sto SE vs. Monster Beverage Corp |
| Apple vs. ON SEMICONDUCTOR | Apple vs. Burlington Stores | Apple vs. National Retail Properties | Apple vs. Goosehead Insurance |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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