Correlation Between Apple and Semperit Aktiengesellscha

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

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

Diversification Opportunities for Apple and Semperit Aktiengesellscha

0.74

Correlation Coefficient

Apple  Semperit Aktiengesellscha

Poor diversification

The 3 months correlation between Apple and Semperit is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Semperit Aktiengesellschaft Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semperit Aktiengesellscha 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 Semperit Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semperit Aktiengesellscha has no effect on the direction of Apple i.e., Apple and Semperit Aktiengesellscha go up and down completely randomly.

Pair Corralation between Apple and Semperit Aktiengesellscha

Assuming the 90 days trading horizon Apple is expected to generate 14.72 times less return on investment than Semperit Aktiengesellscha. But when comparing it to its historical volatility, Apple Inc is 1.1 times less risky than Semperit Aktiengesellscha. It trades about 0.03 of its potential returns per unit of risk. Semperit Aktiengesellschaft Holding is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  1,162  in Semperit Aktiengesellschaft Holding on October 10, 2024 and sell it today you would earn a total of  66.00  from holding Semperit Aktiengesellschaft Holding or generate 5.68% return on investment over 90 days.

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

Apple Inc  vs.  Semperit Aktiengesellschaft Ho

Apple Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Semperit Aktiengesellscha

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Semperit Aktiengesellschaft Holding are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Semperit Aktiengesellscha may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Apple and Semperit Aktiengesellscha

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

The idea behind Apple Inc and Semperit Aktiengesellschaft 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.

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 Valuation module to check real value of public entities based on technical and fundamental data.