Correlation Between APAC Resources and Cal-Bay Intl
Can any of the company-specific risk be diversified away by investing in both APAC Resources and Cal-Bay Intl 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 APAC Resources and Cal-Bay Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APAC Resources Limited and Cal Bay Intl, you can compare the effects of market volatilities on APAC Resources and Cal-Bay Intl 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 APAC Resources with a short position of Cal-Bay Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of APAC Resources and Cal-Bay Intl.
Diversification Opportunities for APAC Resources and Cal-Bay Intl
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between APAC and Cal-Bay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding APAC Resources Limited and Cal Bay Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Bay Intl and APAC Resources 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 APAC Resources Limited are associated (or correlated) with Cal-Bay Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Bay Intl has no effect on the direction of APAC Resources i.e., APAC Resources and Cal-Bay Intl go up and down completely randomly.
Pair Corralation between APAC Resources and Cal-Bay Intl
Assuming the 90 days horizon APAC Resources is expected to generate 4.03 times less return on investment than Cal-Bay Intl. But when comparing it to its historical volatility, APAC Resources Limited is 3.34 times less risky than Cal-Bay Intl. It trades about 0.06 of its potential returns per unit of risk. Cal Bay Intl is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Cal Bay Intl on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Cal Bay Intl or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
APAC Resources Limited vs. Cal Bay Intl
Performance |
| Timeline |
| APAC Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Cal Bay Intl |
APAC Resources and Cal-Bay Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APAC Resources and Cal-Bay Intl
The main advantage of trading using opposite APAC Resources and Cal-Bay Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APAC Resources position performs unexpectedly, Cal-Bay Intl 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 Cal-Bay Intl will offset losses from the drop in Cal-Bay Intl's long position.| APAC Resources vs. ABS CBN Holdings | APAC Resources vs. Ameritrust Corp | APAC Resources vs. Armada Mercantile | APAC Resources vs. Arcane Crypto AB |
| Cal-Bay Intl vs. Halitron | Cal-Bay Intl vs. First BITCoin Capital | Cal-Bay Intl vs. Blackstar Enterprise Group | Cal-Bay Intl vs. Armada Mercantile |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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