Correlation Between Apex Mining and Oriental Petroleum
Can any of the company-specific risk be diversified away by investing in both Apex Mining and Oriental Petroleum 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 Oriental Petroleum 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 Oriental Petroleum and, you can compare the effects of market volatilities on Apex Mining and Oriental Petroleum 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 Oriental Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Oriental Petroleum.
Diversification Opportunities for Apex Mining and Oriental Petroleum
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Apex and Oriental is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Oriental Petroleum and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Petroleum and 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 Oriental Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Petroleum and has no effect on the direction of Apex Mining i.e., Apex Mining and Oriental Petroleum go up and down completely randomly.
Pair Corralation between Apex Mining and Oriental Petroleum
Assuming the 90 days trading horizon Apex Mining Co is expected to generate 0.4 times more return on investment than Oriental Petroleum. However, Apex Mining Co is 2.47 times less risky than Oriental Petroleum. It trades about -0.01 of its potential returns per unit of risk. Oriental Petroleum and is currently generating about -0.33 per unit of risk. If you would invest 361.00 in Apex Mining Co on September 14, 2024 and sell it today you would lose (2.00) from holding Apex Mining Co or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Apex Mining Co vs. Oriental Petroleum and
Performance |
| Timeline |
| Apex Mining |
| Oriental Petroleum and |
Apex Mining and Oriental Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Mining and Oriental Petroleum
The main advantage of trading using opposite Apex Mining and Oriental Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Mining position performs unexpectedly, Oriental Petroleum 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 Oriental Petroleum will offset losses from the drop in Oriental Petroleum's long position.| Apex Mining vs. Nickel Asia Corp | Apex Mining vs. Atok Big Wedge | Apex Mining vs. Philex Mining Corp | Apex Mining vs. Atlas Consolidated Mining |
| Oriental Petroleum vs. Concepcion Industrial Corp | Oriental Petroleum vs. Alliance Select Foods | Oriental Petroleum vs. Philex Mining Corp | Oriental Petroleum vs. Apex Mining Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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