Correlation Between Euronav NV and Apple
Can any of the company-specific risk be diversified away by investing in both Euronav NV 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 Euronav NV and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euronav NV and Apple Inc, you can compare the effects of market volatilities on Euronav NV 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 Euronav NV with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euronav NV and Apple.
Diversification Opportunities for Euronav NV and Apple
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Euronav and Apple is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Euronav NV and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Euronav NV 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 Euronav NV 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 Euronav NV i.e., Euronav NV and Apple go up and down completely randomly.
Pair Corralation between Euronav NV and Apple
Given the investment horizon of 90 days Euronav NV is expected to generate 1.33 times more return on investment than Apple. However, Euronav NV is 1.33 times more volatile than Apple Inc. It trades about 0.23 of its potential returns per unit of risk. Apple Inc is currently generating about -0.19 per unit of risk. If you would invest 1,469 in Euronav NV on January 20, 2024 and sell it today you would earn a total of 168.00 from holding Euronav NV or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Euronav NV vs. Apple Inc
Performance |
| Timeline |
| Euronav NV |
| Apple Inc |
Euronav NV and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euronav NV and Apple
The main advantage of trading using opposite Euronav NV and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euronav NV 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.| Euronav NV vs. Frontline | Euronav NV vs. Teekay Tankers | Euronav NV vs. Scorpio Tankers | Euronav NV vs. Tsakos Energy Navigation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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