Correlation Between Globe Telecom and Apex Mining
Can any of the company-specific risk be diversified away by investing in both Globe Telecom 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 Globe Telecom and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Telecom and Apex Mining Co, you can compare the effects of market volatilities on Globe Telecom 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 Globe Telecom with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Telecom and Apex Mining.
Diversification Opportunities for Globe Telecom and Apex Mining
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Globe and Apex is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Globe Telecom and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Globe Telecom 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 Globe Telecom 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 Globe Telecom i.e., Globe Telecom and Apex Mining go up and down completely randomly.
Pair Corralation between Globe Telecom and Apex Mining
Assuming the 90 days trading horizon Globe Telecom is expected to generate 6.26 times less return on investment than Apex Mining. But when comparing it to its historical volatility, Globe Telecom is 1.74 times less risky than Apex Mining. It trades about 0.02 of its potential returns per unit of risk. Apex Mining Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Telecom vs. Apex Mining Co
Performance |
| Timeline |
| Globe Telecom |
| Apex Mining |
Globe Telecom and Apex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Telecom and Apex Mining
The main advantage of trading using opposite Globe Telecom and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Telecom 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.| Globe Telecom vs. Allhome Corp | Globe Telecom vs. Jollibee Foods Corp | Globe Telecom vs. LFM Properties Corp | Globe Telecom vs. PXP Energy Corp |
| Apex Mining vs. Figaro Coffee Group | Apex Mining vs. Integrated Micro Electronics | Apex Mining vs. BDO Unibank | Apex Mining vs. Security Bank Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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