Correlation Between BAUER Aktiengesellscha and Apple
Can any of the company-specific risk be diversified away by investing in both BAUER Aktiengesellscha 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 BAUER Aktiengesellscha and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BAUER Aktiengesellschaft and Apple Inc, you can compare the effects of market volatilities on BAUER Aktiengesellscha 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 BAUER Aktiengesellscha with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAUER Aktiengesellscha and Apple.
Diversification Opportunities for BAUER Aktiengesellscha and Apple
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BAUER and Apple is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding BAUER Aktiengesellschaft and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and BAUER Aktiengesellscha 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 BAUER Aktiengesellschaft 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 BAUER Aktiengesellscha i.e., BAUER Aktiengesellscha and Apple go up and down completely randomly.
Pair Corralation between BAUER Aktiengesellscha and Apple
If you would invest 610.00 in BAUER Aktiengesellschaft on January 25, 2024 and sell it today you would earn a total of 0.00 from holding BAUER Aktiengesellschaft or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BAUER Aktiengesellschaft vs. Apple Inc
Performance |
| Timeline |
| BAUER Aktiengesellschaft |
| Apple Inc |
BAUER Aktiengesellscha and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAUER Aktiengesellscha and Apple
The main advantage of trading using opposite BAUER Aktiengesellscha and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAUER Aktiengesellscha 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.| BAUER Aktiengesellscha vs. Lilium Equity Warrants | BAUER Aktiengesellscha vs. Blade Air Mobility | BAUER Aktiengesellscha vs. HUMANA INC | BAUER Aktiengesellscha vs. Aquagold International |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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