Correlation Between Apple and European Residential
Can any of the company-specific risk be diversified away by investing in both Apple and European Residential 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 European Residential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc CDR and European Residential Real, you can compare the effects of market volatilities on Apple and European Residential 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 European Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and European Residential.
Diversification Opportunities for Apple and European Residential
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and European is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and European Residential Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Residential Real 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 CDR are associated (or correlated) with European Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Residential Real has no effect on the direction of Apple i.e., Apple and European Residential go up and down completely randomly.
Pair Corralation between Apple and European Residential
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.21 times more return on investment than European Residential. However, Apple Inc CDR is 4.82 times less risky than European Residential. It trades about 0.17 of its potential returns per unit of risk. European Residential Real is currently generating about -0.1 per unit of risk. If you would invest 3,282 in Apple Inc CDR on August 22, 2025 and sell it today you would earn a total of 562.00 from holding Apple Inc CDR or generate 17.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc CDR vs. European Residential Real
Performance |
| Timeline |
| Apple Inc CDR |
| European Residential Real |
Apple and European Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and European Residential
The main advantage of trading using opposite Apple and European Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, European Residential 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 European Residential will offset losses from the drop in European Residential's long position.| Apple vs. Yorbeau Resources | Apple vs. Gunnison Copper Corp | Apple vs. iShares Canadian HYBrid | Apple vs. European Residential Real |
| European Residential vs. Invesque | European Residential vs. Canadian Net Real | European Residential vs. True North Commercial | European Residential vs. Parkit Enterprise |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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