Correlation Between Aalborg Boldspilklub and Apple
Can any of the company-specific risk be diversified away by investing in both Aalborg Boldspilklub 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 Aalborg Boldspilklub and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aalborg Boldspilklub AS and Apple Inc, you can compare the effects of market volatilities on Aalborg Boldspilklub 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 Aalborg Boldspilklub with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aalborg Boldspilklub and Apple.
Diversification Opportunities for Aalborg Boldspilklub and Apple
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aalborg and Apple is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aalborg Boldspilklub AS and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Aalborg Boldspilklub 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 Aalborg Boldspilklub AS 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 Aalborg Boldspilklub i.e., Aalborg Boldspilklub and Apple go up and down completely randomly.
Pair Corralation between Aalborg Boldspilklub and Apple
Assuming the 90 days trading horizon Aalborg Boldspilklub AS is expected to generate 1.03 times more return on investment than Apple. However, Aalborg Boldspilklub is 1.03 times more volatile than Apple Inc. It trades about 0.2 of its potential returns per unit of risk. Apple Inc is currently generating about -0.1 per unit of risk. If you would invest 4,440 in Aalborg Boldspilklub AS on January 24, 2024 and sell it today you would earn a total of 240.00 from holding Aalborg Boldspilklub AS or generate 5.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 90.0% |
Values | Daily Returns |
Aalborg Boldspilklub AS vs. Apple Inc
Performance |
Timeline |
Aalborg Boldspilklub |
Apple Inc |
Aalborg Boldspilklub and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aalborg Boldspilklub and Apple
The main advantage of trading using opposite Aalborg Boldspilklub and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aalborg Boldspilklub 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.Aalborg Boldspilklub vs. Broendbyernes IF Fodbold | Aalborg Boldspilklub vs. NKT AS | Aalborg Boldspilklub vs. Jyske Bank AS |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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