Correlation Between Fynske Bank and Apple
Can any of the company-specific risk be diversified away by investing in both Fynske Bank 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 Fynske Bank and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fynske Bank AS and Apple Inc, you can compare the effects of market volatilities on Fynske Bank 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 Fynske Bank with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and Apple.
Diversification Opportunities for Fynske Bank and Apple
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fynske and Apple is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank AS and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Fynske Bank 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 Fynske Bank 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 Fynske Bank i.e., Fynske Bank and Apple go up and down completely randomly.
Pair Corralation between Fynske Bank and Apple
Assuming the 90 days trading horizon Fynske Bank AS is expected to generate 1.13 times more return on investment than Apple. However, Fynske Bank is 1.13 times more volatile than Apple Inc. It trades about 0.33 of its potential returns per unit of risk. Apple Inc is currently generating about -0.12 per unit of risk. If you would invest 14,943 in Fynske Bank AS on January 19, 2024 and sell it today you would earn a total of 1,957 from holding Fynske Bank AS or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fynske Bank AS vs. Apple Inc
Performance |
| Timeline |
| Fynske Bank AS |
| Apple Inc |
Fynske Bank and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fynske Bank and Apple
The main advantage of trading using opposite Fynske Bank and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank 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.| Fynske Bank vs. Skjern Bank AS | Fynske Bank vs. Lollands Bank | Fynske Bank vs. Kreditbanken AS | Fynske Bank vs. Nordfyns 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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