Correlation Between APAC Resources and Pinetree Capital
Can any of the company-specific risk be diversified away by investing in both APAC Resources and Pinetree Capital 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 Pinetree Capital 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 Pinetree Capital, you can compare the effects of market volatilities on APAC Resources and Pinetree Capital 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 Pinetree Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of APAC Resources and Pinetree Capital.
Diversification Opportunities for APAC Resources and Pinetree Capital
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between APAC and Pinetree is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding APAC Resources Limited and Pinetree Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinetree Capital 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 Pinetree Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinetree Capital has no effect on the direction of APAC Resources i.e., APAC Resources and Pinetree Capital go up and down completely randomly.
Pair Corralation between APAC Resources and Pinetree Capital
If you would invest 646.00 in Pinetree Capital on August 29, 2024 and sell it today you would earn a total of 95.00 from holding Pinetree Capital or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
APAC Resources Limited vs. Pinetree Capital
Performance |
| Timeline |
| APAC Resources |
| Pinetree Capital |
APAC Resources and Pinetree Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APAC Resources and Pinetree Capital
The main advantage of trading using opposite APAC Resources and Pinetree Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APAC Resources position performs unexpectedly, Pinetree Capital 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 Pinetree Capital will offset losses from the drop in Pinetree Capital'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 |
| Pinetree Capital vs. Invesco High Income | Pinetree Capital vs. Blackrock Muniholdings Ny | Pinetree Capital vs. Nuveen California Select | Pinetree Capital vs. MFS Investment Grade |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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