Correlation Between Seluxit AS and Apple
Can any of the company-specific risk be diversified away by investing in both Seluxit AS 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 Seluxit AS and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seluxit AS and Apple Inc, you can compare the effects of market volatilities on Seluxit AS 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 Seluxit AS with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seluxit AS and Apple.
Diversification Opportunities for Seluxit AS and Apple
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seluxit and Apple is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Seluxit AS and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Seluxit AS 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 Seluxit 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 Seluxit AS i.e., Seluxit AS and Apple go up and down completely randomly.
Pair Corralation between Seluxit AS and Apple
Assuming the 90 days trading horizon Seluxit AS is expected to generate 7.79 times more return on investment than Apple. However, Seluxit AS is 7.79 times more volatile than Apple Inc. It trades about 0.06 of its potential returns per unit of risk. Apple Inc is currently generating about -0.04 per unit of risk. If you would invest 270.00 in Seluxit AS on January 25, 2024 and sell it today you would earn a total of 80.00 from holding Seluxit AS or generate 29.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Seluxit AS vs. Apple Inc
Performance |
| Timeline |
| Seluxit AS |
| Apple Inc |
Seluxit AS and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seluxit AS and Apple
The main advantage of trading using opposite Seluxit AS and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seluxit AS 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.| Seluxit AS vs. Spar Nord Bank | Seluxit AS vs. Vestjysk Bank AS | Seluxit AS vs. Djurslands Bank | Seluxit AS vs. PARKEN Sport Entertainment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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