Correlation Between Apex Mining and Security Bank
Can any of the company-specific risk be diversified away by investing in both Apex Mining and Security Bank 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 Security Bank 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 Security Bank Corp, you can compare the effects of market volatilities on Apex Mining and Security Bank 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 Security Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Security Bank.
Diversification Opportunities for Apex Mining and Security Bank
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apex and Security is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Security Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security Bank 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 Security Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security Bank Corp has no effect on the direction of Apex Mining i.e., Apex Mining and Security Bank go up and down completely randomly.
Pair Corralation between Apex Mining and Security Bank
Assuming the 90 days trading horizon Apex Mining Co is expected to generate 1.11 times more return on investment than Security Bank. However, Apex Mining is 1.11 times more volatile than Security Bank Corp. It trades about 0.09 of its potential returns per unit of risk. Security Bank Corp is currently generating about 0.08 per unit of risk. If you would invest 262.00 in Apex Mining Co on September 1, 2024 and sell it today you would earn a total of 97.00 from holding Apex Mining Co or generate 37.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Mining Co vs. Security Bank Corp
Performance |
| Timeline |
| Apex Mining |
| Security Bank Corp |
Apex Mining and Security Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Mining and Security Bank
The main advantage of trading using opposite Apex Mining and Security Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Mining position performs unexpectedly, Security Bank 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 Security Bank will offset losses from the drop in Security Bank's long position.The idea behind Apex Mining Co and Security Bank Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Security Bank vs. Metropolitan Bank Trust | Security Bank vs. Philippine National Bank | Security Bank vs. Asia United Bank | Security Bank vs. Philippine Savings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |