Correlation Between PXP Energy and Apex Mining
Can any of the company-specific risk be diversified away by investing in both PXP Energy 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 PXP Energy and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PXP Energy Corp and Apex Mining Co, you can compare the effects of market volatilities on PXP Energy 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 PXP Energy with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PXP Energy and Apex Mining.
Diversification Opportunities for PXP Energy and Apex Mining
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PXP and Apex is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding PXP Energy Corp and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and PXP Energy 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 PXP Energy Corp 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 PXP Energy i.e., PXP Energy and Apex Mining go up and down completely randomly.
Pair Corralation between PXP Energy and Apex Mining
Assuming the 90 days trading horizon PXP Energy Corp is expected to under-perform the Apex Mining. In addition to that, PXP Energy is 1.82 times more volatile than Apex Mining Co. It trades about 0.0 of its total potential returns per unit of risk. Apex Mining Co is currently generating about 0.05 per unit of volatility. If you would invest 293.00 in Apex Mining Co on August 29, 2024 and sell it today you would earn a total of 65.00 from holding Apex Mining Co or generate 22.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
PXP Energy Corp vs. Apex Mining Co
Performance |
| Timeline |
| PXP Energy Corp |
| Apex Mining |
PXP Energy and Apex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PXP Energy and Apex Mining
The main advantage of trading using opposite PXP Energy and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PXP Energy 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.| PXP Energy vs. Security Bank Corp | PXP Energy vs. Converge Information Communications | PXP Energy vs. Bank of the | PXP Energy vs. Philex Mining 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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