Correlation Between Apex Frozen and Investment Trust
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By analyzing existing cross correlation between Apex Frozen Foods and The Investment Trust, you can compare the effects of market volatilities on Apex Frozen and Investment Trust 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 Apex Frozen with a short position of Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Frozen and Investment Trust.
Diversification Opportunities for Apex Frozen and Investment Trust
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apex and Investment is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Apex Frozen Foods and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust and Apex Frozen 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 Apex Frozen Foods are associated (or correlated) with Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of Apex Frozen i.e., Apex Frozen and Investment Trust go up and down completely randomly.
Pair Corralation between Apex Frozen and Investment Trust
Assuming the 90 days trading horizon Apex Frozen Foods is expected to generate 2.19 times more return on investment than Investment Trust. However, Apex Frozen is 2.19 times more volatile than The Investment Trust. It trades about -0.14 of its potential returns per unit of risk. The Investment Trust is currently generating about -0.48 per unit of risk. If you would invest 27,441 in Apex Frozen Foods on October 17, 2024 and sell it today you would lose (3,926) from holding Apex Frozen Foods or give up 14.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Frozen Foods vs. The Investment Trust
Performance |
| Timeline |
| Apex Frozen Foods |
| Investment Trust |
Apex Frozen and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Frozen and Investment Trust
The main advantage of trading using opposite Apex Frozen and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Frozen position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| Apex Frozen vs. Asian Hotels Limited | Apex Frozen vs. SINCLAIRS HOTELS ORD | Apex Frozen vs. DIAMINES AND CHEMICALS | Apex Frozen vs. JGCHEMICALS LIMITED |
| Investment Trust vs. LT Foods Limited | Investment Trust vs. Tata Communications Limited | Investment Trust vs. Prakash Steelage Limited | Investment Trust vs. Apex Frozen Foods |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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