Correlation Between SEBinvest AKL and Apple

By analyzing existing cross correlation between SEBinvest AKL Nordiske and Apple Inc you can compare the effects of market volatilities on SEBinvest AKL 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 SEBinvest AKL with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEBinvest AKL and Apple.

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Can any of the company-specific risk be diversified away by investing in both SEBinvest AKL and Apple at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing SEBinvest AKL and Apple into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for SEBinvest AKL and Apple

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Modest diversification

The 3 months correlation between SEBinvest and Apple is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SEBinvest AKL Nordiske Aktier and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and SEBinvest AKL 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 SEBinvest AKL Nordiske 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 SEBinvest AKL i.e. SEBinvest AKL and Apple go up and down completely randomly.

Pair Corralation between SEBinvest AKL and Apple

Assuming 30 trading days horizon, SEBinvest AKL Nordiske is expected to generate 0.85 times more return on investment than Apple. However, SEBinvest AKL Nordiske is 1.17 times less risky than Apple. It trades about 0.17 of its potential returns per unit of risk. Apple Inc is currently generating about 0.05 per unit of risk. If you would invest  7,898  in SEBinvest AKL Nordiske on April 24, 2020 and sell it today you would earn a total of  370.00  from holding SEBinvest AKL Nordiske or generate 4.68% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
ValuesDaily Returns

SEBinvest AKL Nordiske Aktier   vs.  Apple Inc

 Performance (%) 
SEBinvest AKL Nordiske 

SEBinvest AKL Risk-Adjusted Performance

Over the last 30 days SEBinvest AKL Nordiske has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite very weak forward-looking indicators, SEBinvest AKL displayed solid returns over the last few months and may actually be approaching a breakup point.
Apple Inc 

Apple Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in June 2020.

SEBinvest AKL and Apple Volatility Contrast

 Predicted Return Density 
Check out your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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