Correlation Between Apple and KBC GR

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

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

Diversification Opportunities for Apple and KBC GR

-0.24

Correlation Coefficient

Apple  KBC GR

Very good diversification

The 3 months correlation between Apple and KBC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and KBC GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBC GR 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 KBC GR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBC GR has no effect on the direction of Apple i.e., Apple and KBC GR go up and down completely randomly.

Pair Corralation between Apple and KBC GR

Assuming the 90 days trading horizon Apple Inc is expected to under-perform the KBC GR. In addition to that, Apple is 1.25 times more volatile than KBC GR . It trades about -0.18 of its total potential returns per unit of risk. KBC GR is currently generating about 0.21 per unit of volatility. If you would invest  7,306  in KBC GR on December 20, 2024 and sell it today you would earn a total of  1,396  from holding KBC GR or generate 19.11% 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.  KBC GR

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

KBC GR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in KBC GR are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental drivers, KBC GR unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and KBC GR

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

The idea behind Apple Inc and KBC GR 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.