Correlation Between Apple and SCHALTBAU HOLDING

Can any of the company-specific risk be diversified away by investing in both Apple and SCHALTBAU HOLDING 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 Apple and SCHALTBAU HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Apple and SCHALTBAU HOLDING

-0.14

Correlation Coefficient

Apple  SCHALTBAU HOLDING

Good diversification

The 3 months correlation between Apple and SCHALTBAU is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and SCHALTBAU HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHALTBAU HOLDING and Apple 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 Apple Inc are associated (or correlated) with SCHALTBAU HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHALTBAU HOLDING has no effect on the direction of Apple i.e., Apple and SCHALTBAU HOLDING go up and down completely randomly.

Pair Corralation between Apple and SCHALTBAU HOLDING

Assuming the 90 days trading horizon Apple Inc is expected to generate 1.33 times more return on investment than SCHALTBAU HOLDING. However, Apple is 1.33 times more volatile than SCHALTBAU HOLDING. It trades about 0.08 of its potential returns per unit of risk. SCHALTBAU HOLDING is currently generating about -0.02 per unit of risk. If you would invest  20,610  in Apple Inc on August 30, 2024 and sell it today you would earn a total of  1,680  from holding Apple Inc or generate 8.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Apple Inc  vs.  SCHALTBAU HOLDING

Apple Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in December 2024.

SCHALTBAU HOLDING

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SCHALTBAU HOLDING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, SCHALTBAU HOLDING is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Apple and SCHALTBAU HOLDING

The main advantage of trading using opposite Apple and SCHALTBAU HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, SCHALTBAU HOLDING 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 SCHALTBAU HOLDING will offset losses from the drop in SCHALTBAU HOLDING's long position.

The idea behind Apple Inc and SCHALTBAU HOLDING pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.