Correlation Between Apex Mining and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both Apex Mining and Integrated Micro 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 Integrated Micro 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 Integrated Micro Electronics, you can compare the effects of market volatilities on Apex Mining and Integrated Micro 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 Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Integrated Micro.
Diversification Opportunities for Apex Mining and Integrated Micro
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apex and Integrated is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele 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 Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Apex Mining i.e., Apex Mining and Integrated Micro go up and down completely randomly.
Pair Corralation between Apex Mining and Integrated Micro
Assuming the 90 days trading horizon Apex Mining Co is expected to generate 0.61 times more return on investment than Integrated Micro. However, Apex Mining Co is 1.63 times less risky than Integrated Micro. It trades about 0.17 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about -0.25 per unit of risk. If you would invest 380.00 in Apex Mining Co on November 5, 2024 and sell it today you would earn a total of 18.00 from holding Apex Mining Co or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Mining Co vs. Integrated Micro Electronics
Performance |
| Timeline |
| Apex Mining |
| Integrated Micro Ele |
Apex Mining and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Mining and Integrated Micro
The main advantage of trading using opposite Apex Mining and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Mining position performs unexpectedly, Integrated Micro 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 Integrated Micro will offset losses from the drop in Integrated Micro's long position.| Apex Mining vs. Manila Mining Corp | Apex Mining vs. Metro Retail Stores | Apex Mining vs. SM Investments Corp | Apex Mining vs. House of Investments |
| Integrated Micro vs. Cebu Air Preferred | Integrated Micro vs. Metro Retail Stores | Integrated Micro vs. Lepanto Consolidated Mining | Integrated Micro vs. Globe Telecom |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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