Correlation Between Apple and EQUINOR ASA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Apple and EQUINOR ASA 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 EQUINOR ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and EQUINOR ASA, you can compare the effects of market volatilities on Apple and EQUINOR ASA 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 EQUINOR ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and EQUINOR ASA.

Diversification Opportunities for Apple and EQUINOR ASA

-0.45
  Correlation Coefficient

Very good diversification

The 6 months correlation between Apple and EQUINOR is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and EQUINOR ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINOR ASA 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 EQUINOR ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINOR ASA has no effect on the direction of Apple i.e., Apple and EQUINOR ASA go up and down completely randomly.

Pair Corralation between Apple and EQUINOR ASA

Given the investment horizon of 90 days Apple Inc is expected to under-perform the EQUINOR ASA. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.06 times less risky than EQUINOR ASA. The stock trades about -0.07 of its potential returns per unit of risk. The EQUINOR ASA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  3,451  in EQUINOR ASA on March 28, 2022 and sell it today you would lose (76.00)  from holding EQUINOR ASA or give up 2.2% of portfolio value over 90 days.
Time Period6 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  EQUINOR ASA

 Performance (%) 
      Timeline 
Apple Inc 
Apple Performance
0 of 100
Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.007
Payout Ratio
0.14
Last Split Factor
4:1
Forward Annual Dividend Rate
0.92
Dividend Date
2022-05-12
Ex Dividend Date
2022-05-06
Last Split Date
2020-08-31

Apple Price Channel

EQUINOR ASA 
EQUINOR Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in EQUINOR ASA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish technical indicators, EQUINOR ASA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0233
Payout Ratio
0.5
Forward Annual Dividend Rate
0.8
Ex Dividend Date
2022-08-11

EQUINOR Price Channel

Apple and EQUINOR ASA Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Apple and EQUINOR ASA

The main advantage of trading using opposite Apple and EQUINOR ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, EQUINOR ASA 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 EQUINOR ASA will offset losses from the drop in EQUINOR ASA's long position.
The idea behind Apple Inc and EQUINOR ASA 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go