Correlation Between Integrated Micro and Apex Mining
Can any of the company-specific risk be diversified away by investing in both Integrated Micro 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 Integrated Micro and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Micro Electronics and Apex Mining Co, you can compare the effects of market volatilities on Integrated Micro 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 Integrated Micro with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Micro and Apex Mining.
Diversification Opportunities for Integrated Micro and Apex Mining
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integrated and Apex is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Micro Electronics and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Integrated Micro 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 Integrated Micro Electronics 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 Integrated Micro i.e., Integrated Micro and Apex Mining go up and down completely randomly.
Pair Corralation between Integrated Micro and Apex Mining
Assuming the 90 days trading horizon Integrated Micro Electronics is expected to under-perform the Apex Mining. In addition to that, Integrated Micro is 1.53 times more volatile than Apex Mining Co. It trades about -0.07 of its total potential returns per unit of risk. Apex Mining Co is currently generating about -0.03 per unit of volatility. If you would invest 424.00 in Apex Mining Co on October 26, 2024 and sell it today you would lose (20.00) from holding Apex Mining Co or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Micro Electronics vs. Apex Mining Co
Performance |
| Timeline |
| Integrated Micro Ele |
| Apex Mining |
Integrated Micro and Apex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Micro and Apex Mining
The main advantage of trading using opposite Integrated Micro and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Micro 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.| Integrated Micro vs. Lepanto Consolidated Mining | Integrated Micro vs. Apex Mining Co | Integrated Micro vs. Semirara Mining Corp | Integrated Micro vs. Atlas Consolidated Mining |
| Apex Mining vs. Atlas Consolidated Mining | Apex Mining vs. Transpacific Broadband Group | Apex Mining vs. Crown Asia Chemicals | Apex Mining vs. Philex Mining 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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