Correlation Between COL Financial and Apex Mining
Can any of the company-specific risk be diversified away by investing in both COL Financial and Apex Mining 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 COL Financial and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COL Financial Group and Apex Mining Co, you can compare the effects of market volatilities on COL Financial and Apex Mining 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 COL Financial with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Financial and Apex Mining.
Diversification Opportunities for COL Financial and Apex Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COL and Apex is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding COL Financial Group and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and COL Financial 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 COL Financial Group are associated (or correlated) with Apex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Mining has no effect on the direction of COL Financial i.e., COL Financial and Apex Mining go up and down completely randomly.
Pair Corralation between COL Financial and Apex Mining
Assuming the 90 days trading horizon COL Financial Group is expected to generate 0.85 times more return on investment than Apex Mining. However, COL Financial Group is 1.17 times less risky than Apex Mining. It trades about -0.03 of its potential returns per unit of risk. Apex Mining Co is currently generating about -0.04 per unit of risk. If you would invest 187.00 in COL Financial Group on August 29, 2024 and sell it today you would lose (16.00) from holding COL Financial Group or give up 8.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
COL Financial Group vs. Apex Mining Co
Performance |
| Timeline |
| COL Financial Group |
| Apex Mining |
COL Financial and Apex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Financial and Apex Mining
The main advantage of trading using opposite COL Financial and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Financial position performs unexpectedly, Apex Mining 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 Apex Mining will offset losses from the drop in Apex Mining's long position.| COL Financial vs. VistaREIT | COL Financial vs. Bright Kindle Resources | COL Financial vs. Medco Holdings | COL Financial vs. Allhome Corp |
| Apex Mining vs. Nickel Asia Corp | Apex Mining vs. Apollo Global Capital | Apex Mining vs. Philex Mining Corp | Apex Mining vs. Atlas Consolidated Mining |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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