Correlation Between Apex Mining and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both Apex Mining and Jollibee Foods 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 Jollibee Foods 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 Jollibee Foods Corp, you can compare the effects of market volatilities on Apex Mining and Jollibee Foods 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 Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Jollibee Foods.
Diversification Opportunities for Apex Mining and Jollibee Foods
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apex and Jollibee is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Jollibee Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods Corp 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 Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods Corp has no effect on the direction of Apex Mining i.e., Apex Mining and Jollibee Foods go up and down completely randomly.
Pair Corralation between Apex Mining and Jollibee Foods
Assuming the 90 days trading horizon Apex Mining Co is expected to generate 1.59 times more return on investment than Jollibee Foods. However, Apex Mining is 1.59 times more volatile than Jollibee Foods Corp. It trades about 0.07 of its potential returns per unit of risk. Jollibee Foods Corp is currently generating about 0.03 per unit of risk. If you would invest 186.00 in Apex Mining Co on August 29, 2024 and sell it today you would earn a total of 172.00 from holding Apex Mining Co or generate 92.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Mining Co vs. Jollibee Foods Corp
Performance |
| Timeline |
| Apex Mining |
| Jollibee Foods Corp |
Apex Mining and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Mining and Jollibee Foods
The main advantage of trading using opposite Apex Mining and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Mining position performs unexpectedly, Jollibee Foods 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| Apex Mining vs. Figaro Coffee Group | Apex Mining vs. Integrated Micro Electronics | Apex Mining vs. BDO Unibank | Apex Mining vs. Security Bank Corp |
| Jollibee Foods vs. Cebu Air Preferred | Jollibee Foods vs. Pacificonline Systems | Jollibee Foods vs. Asia United Bank | Jollibee Foods vs. Philippine Business Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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