Correlation Between Repsol SA and Apple

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

By analyzing existing cross correlation between Repsol SA and Apple Inc DRC, you can compare the effects of market volatilities on Repsol SA 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 Repsol SA with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repsol SA and Apple.

Diversification Opportunities for Repsol SA and Apple

-0.38

Correlation Coefficient

Repsol SA  Apple

Very good diversification

The 3 months correlation between Repsol and Apple is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Repsol SA and Apple Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc DRC and Repsol SA 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 Repsol SA 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 DRC has no effect on the direction of Repsol SA i.e., Repsol SA and Apple go up and down completely randomly.

Pair Corralation between Repsol SA and Apple

Assuming the 90 days trading horizon Repsol SA is not expected to generate positive returns. However, Repsol SA is 129.11 times less risky than Apple. It waists most of its returns potential to compensate for thr risk taken. Apple is generating about 0.16 per unit of risk. If you would invest  1,157,500  in Apple Inc DRC on April 22, 2025 and sell it today you would earn a total of  207,500  from holding Apple Inc DRC or generate 17.93% return on investment over 90 days.

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

Repsol SA  vs.  Apple Inc DRC

Repsol SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repsol SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Repsol SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Apple Inc DRC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc DRC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Apple sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Repsol SA and Apple

The main advantage of trading using opposite Repsol SA and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repsol SA 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.

The idea behind Repsol SA and Apple Inc DRC 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..