Correlation Between Signature Bank and Apple
Can any of the company-specific risk be diversified away by investing in both Signature Bank 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 Signature Bank and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signature Bank and Apple Inc, you can compare the effects of market volatilities on Signature Bank 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 Signature Bank with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signature Bank and Apple.
Diversification Opportunities for Signature Bank and Apple
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Signature and Apple is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Signature Bank and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Signature Bank 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 Signature Bank 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 Signature Bank i.e., Signature Bank and Apple go up and down completely randomly.
Pair Corralation between Signature Bank and Apple
If you would invest 195.00 in Signature Bank on January 24, 2024 and sell it today you would earn a total of 0.00 from holding Signature Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Signature Bank vs. Apple Inc
Performance |
| Timeline |
| Signature Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Apple Inc |
Signature Bank and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signature Bank and Apple
The main advantage of trading using opposite Signature Bank and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signature Bank 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.| Signature Bank vs. Zions Bancorporation | Signature Bank vs. KeyCorp | Signature Bank vs. Comerica | Signature Bank vs. First Horizon National |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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