Correlation Between Skjern Bank and Apple
Can any of the company-specific risk be diversified away by investing in both Skjern 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 Skjern Bank and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skjern Bank AS and Apple Inc, you can compare the effects of market volatilities on Skjern 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 Skjern Bank with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skjern Bank and Apple.
Diversification Opportunities for Skjern Bank and Apple
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Skjern and Apple is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Skjern 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 Skjern 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 Skjern 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 Skjern Bank i.e., Skjern Bank and Apple go up and down completely randomly.
Pair Corralation between Skjern Bank and Apple
Assuming the 90 days trading horizon Skjern Bank AS is expected to generate 0.98 times more return on investment than Apple. However, Skjern Bank AS is 1.03 times less risky than Apple. It trades about 0.19 of its potential returns per unit of risk. Apple Inc is currently generating about -0.15 per unit of risk. If you would invest 16,173 in Skjern Bank AS on January 24, 2024 and sell it today you would earn a total of 1,727 from holding Skjern Bank AS or generate 10.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 97.56% |
Values | Daily Returns |
Skjern Bank AS vs. Apple Inc
Performance |
Timeline |
Skjern Bank AS |
Apple Inc |
Skjern Bank and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Skjern Bank and Apple
The main advantage of trading using opposite Skjern Bank and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skjern 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.Skjern Bank vs. Bavarian Nordic | Skjern Bank vs. DSV Panalpina AS | Skjern Bank vs. Vestas Wind Systems | Skjern Bank vs. Ambu 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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