Correlation Between VIB Vermgen and Apple

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

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

Diversification Opportunities for VIB Vermgen and Apple

0.25

Correlation Coefficient

VIB Vermgen  Apple

Modest diversification

The 3 months correlation between VIB and Apple is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding VIB Vermgen AG and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and VIB Vermgen 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 VIB Vermgen AG 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 VIB Vermgen i.e., VIB Vermgen and Apple go up and down completely randomly.

Pair Corralation between VIB Vermgen and Apple

Assuming the 90 days trading horizon VIB Vermgen AG is expected to generate 0.81 times more return on investment than Apple. However, VIB Vermgen AG is 1.24 times less risky than Apple. It trades about -0.03 of its potential returns per unit of risk. Apple Inc is currently generating about -0.15 per unit of risk. If you would invest  1,000.00  in VIB Vermgen AG on December 29, 2024 and sell it today you would lose (33.00) from holding VIB Vermgen AG or give up 3.3% of portfolio value over 90 days.

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

VIB Vermgen AG  vs.  Apple Inc

VIB Vermgen AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days VIB Vermgen AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, VIB Vermgen is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with VIB Vermgen and Apple

The main advantage of trading using opposite VIB Vermgen and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIB Vermgen 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.

The idea behind VIB Vermgen AG and Apple Inc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.