Correlation Between Apple and Sixt Leasing

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

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

Diversification Opportunities for Apple and Sixt Leasing

-0.74

Correlation Coefficient

Apple  Sixt Leasing

Pay attention - limited upside

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

Pair Corralation between Apple and Sixt Leasing

Assuming the 90 days trading horizon Apple Inc is expected to generate 0.79 times more return on investment than Sixt Leasing. However, Apple Inc is 1.27 times less risky than Sixt Leasing. It trades about 0.1 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.1 per unit of risk. If you would invest  20,670  in Apple Inc on September 1, 2024 and sell it today you would earn a total of  1,725  from holding Apple Inc or generate 8.35% return on investment over 90 days.

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

Apple Inc  vs.  Sixt Leasing SE

Apple Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Sixt Leasing SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sixt Leasing SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Apple and Sixt Leasing

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

The idea behind Apple Inc and Sixt Leasing SE 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.