Correlation Between Apple and HENSOLDT

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

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

Diversification Opportunities for Apple and HENSOLDT

-0.38

Correlation Coefficient

Apple  HENSOLDT

Very good diversification

The 3 months correlation between Apple and HENSOLDT is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and HENSOLDT AG UNSP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HENSOLDT AG UNSP 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 HENSOLDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HENSOLDT AG UNSP has no effect on the direction of Apple i.e., Apple and HENSOLDT go up and down completely randomly.

Pair Corralation between Apple and HENSOLDT

Assuming the 90 days trading horizon Apple is expected to generate 58.06 times less return on investment than HENSOLDT. But when comparing it to its historical volatility, Apple Inc is 2.42 times less risky than HENSOLDT. It trades about 0.01 of its potential returns per unit of risk. HENSOLDT AG UNSP is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  3,064  in HENSOLDT AG UNSP on April 24, 2025 and sell it today you would earn a total of  2,036  from holding HENSOLDT AG UNSP or generate 66.45% return on investment over 90 days.

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

Apple Inc  vs.  HENSOLDT AG UNSP

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 rather sound fundamental indicators, Apple is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

HENSOLDT AG UNSP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in HENSOLDT AG UNSP are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, HENSOLDT reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apple and HENSOLDT

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

The idea behind Apple Inc and HENSOLDT AG UNSP 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.