Correlation Between Apex Mining and Cirtek Holdings
Can any of the company-specific risk be diversified away by investing in both Apex Mining and Cirtek Holdings 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 Cirtek Holdings 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 Cirtek Holdings Philippines, you can compare the effects of market volatilities on Apex Mining and Cirtek Holdings 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 Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Cirtek Holdings.
Diversification Opportunities for Apex Mining and Cirtek Holdings
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apex and Cirtek is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Cirtek Holdings Philippines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cirtek Holdings Phil 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 Cirtek Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cirtek Holdings Phil has no effect on the direction of Apex Mining i.e., Apex Mining and Cirtek Holdings go up and down completely randomly.
Pair Corralation between Apex Mining and Cirtek Holdings
Assuming the 90 days trading horizon Apex Mining Co is expected to under-perform the Cirtek Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Apex Mining Co is 5.45 times less risky than Cirtek Holdings. The stock trades about -0.16 of its potential returns per unit of risk. The Cirtek Holdings Philippines is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 63.00 in Cirtek Holdings Philippines on September 24, 2024 and sell it today you would lose (7.00) from holding Cirtek Holdings Philippines or give up 11.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 32.81% |
Values | Daily Returns |
Apex Mining Co vs. Cirtek Holdings Philippines
Performance |
Timeline |
Apex Mining |
Cirtek Holdings Phil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apex Mining and Cirtek Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apex Mining and Cirtek Holdings
The main advantage of trading using opposite Apex Mining and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Mining position performs unexpectedly, Cirtek Holdings 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 Cirtek Holdings will offset losses from the drop in Cirtek Holdings' long position.Apex Mining vs. Nickel Asia Corp | Apex Mining vs. Apollo Global Capital | Apex Mining vs. Atok Big Wedge | Apex Mining vs. Philex Mining Corp |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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