Last month we promised to give you a little insight in the ‘other’ market index that Apple Tree uses for implementing its investment strategy: the European index, EUROSTOXX50 (ESTX50). To give you the most updated view, we have decided to postpone this until next month, when the Q1 financial results, and its market responses, will be fully incorporated in the data.
However, to still give you a glimpse ahead, we’ll take a quick look into correlation. Apple Tree Fund’s correlation with the ESTX50 is close to zero, meaning that the Fund moves ‘independently’ from the underlying index. The correlation measure R-squared for Apple Tree Fund – ESTX50 is 0.02. As was the case with AEX, it means that no matter what the ESTX50 does, the Fund can still return a profit.
Data: May 2020-April 2023
Source: Apple Tree Capital Partners