Correlation Between Apex Mining and Prime Media
Can any of the company-specific risk be diversified away by investing in both Apex Mining and Prime Media 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 Prime Media 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 Prime Media Holdings, you can compare the effects of market volatilities on Apex Mining and Prime Media 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 Prime Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Prime Media.
Diversification Opportunities for Apex Mining and Prime Media
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apex and Prime is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Prime Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Media Holdings 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 Prime Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Media Holdings has no effect on the direction of Apex Mining i.e., Apex Mining and Prime Media go up and down completely randomly.
Pair Corralation between Apex Mining and Prime Media
Assuming the 90 days trading horizon Apex Mining Co is expected to generate 0.44 times more return on investment than Prime Media. However, Apex Mining Co is 2.29 times less risky than Prime Media. It trades about 0.28 of its potential returns per unit of risk. Prime Media Holdings is currently generating about -0.06 per unit of risk. If you would invest 351.00 in Apex Mining Co on November 3, 2024 and sell it today you would earn a total of 47.00 from holding Apex Mining Co or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Apex Mining Co vs. Prime Media Holdings
Performance |
| Timeline |
| Apex Mining |
| Prime Media Holdings |
Apex Mining and Prime Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Mining and Prime Media
The main advantage of trading using opposite Apex Mining and Prime Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Mining position performs unexpectedly, Prime Media 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 Prime Media will offset losses from the drop in Prime Media's long position.| Apex Mining vs. National Reinsurance | Apex Mining vs. Lepanto Consolidated Mining | Apex Mining vs. Union Bank of | Apex Mining vs. Converge Information Communications |
| Prime Media vs. Converge Information Communications | Prime Media vs. Atlas Consolidated Mining | Prime Media vs. Metro Retail Stores | Prime Media vs. Robinsons Retail Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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