Correlation Between Ffbw and Apple
Can any of the company-specific risk be diversified away by investing in both Ffbw 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 Ffbw and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ffbw Inc and Apple Inc, you can compare the effects of market volatilities on Ffbw 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 Ffbw with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ffbw and Apple.
Diversification Opportunities for Ffbw and Apple
Very good diversification
The 3 months correlation between Ffbw and Apple is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ffbw Inc and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Ffbw 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 Ffbw Inc 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 Ffbw i.e., Ffbw and Apple go up and down completely randomly.
Pair Corralation between Ffbw and Apple
Given the investment horizon of 90 days Ffbw is expected to generate 2.46 times less return on investment than Apple. But when comparing it to its historical volatility, Ffbw Inc is 1.61 times less risky than Apple. It trades about 0.01 of its potential returns per unit of risk. Apple Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 15,573 in Apple Inc on January 26, 2024 and sell it today you would earn a total of 1,329 from holding Apple Inc or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.47% |
| Values | Daily Returns |
Ffbw Inc vs. Apple Inc
Performance |
| Timeline |
| Ffbw Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Apple Inc |
Ffbw and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ffbw and Apple
The main advantage of trading using opposite Ffbw and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ffbw 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.| Ffbw vs. Nmb Financial Corp | Ffbw vs. Hang Seng Bank | Ffbw vs. Southern BancShares NC | Ffbw vs. CCSB Financial Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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