Correlation Between Apex Mining and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Apex Mining and Apollo Global 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 Apex Mining and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apex Mining Co and Apollo Global Capital, you can compare the effects of market volatilities on Apex Mining and Apollo Global 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 Mining with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Apollo Global.
Diversification Opportunities for Apex Mining and Apollo Global
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apex and Apollo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Apollo Global Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Capital and Apex Mining 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 Mining Co are associated (or correlated) with Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Capital has no effect on the direction of Apex Mining i.e., Apex Mining and Apollo Global go up and down completely randomly.
Pair Corralation between Apex Mining and Apollo Global
Assuming the 90 days trading horizon Apex Mining Co is expected to generate 0.67 times more return on investment than Apollo Global. However, Apex Mining Co is 1.48 times less risky than Apollo Global. It trades about -0.1 of its potential returns per unit of risk. Apollo Global Capital is currently generating about -0.27 per unit of risk. If you would invest 407.00 in Apex Mining Co on September 2, 2024 and sell it today you would lose (48.00) from holding Apex Mining Co or give up 11.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Mining Co vs. Apollo Global Capital
Performance |
| Timeline |
| Apex Mining |
| Apollo Global Capital |
Apex Mining and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Mining and Apollo Global
The main advantage of trading using opposite Apex Mining and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Mining position performs unexpectedly, Apollo Global 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 Apollo Global will offset losses from the drop in Apollo Global's long position.| Apex Mining vs. Transpacific Broadband Group | Apex Mining vs. Converge Information Communications | Apex Mining vs. Philex Mining Corp | Apex Mining vs. East West Banking |
| Apollo Global vs. Manila Mining Corp | Apollo Global vs. Metro Retail Stores | Apollo Global vs. Integrated Micro Electronics | Apollo Global vs. STI Education Systems |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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