Correlation Between Bitcoin Well and APAC Resources

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bitcoin Well and APAC Resources 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 Bitcoin Well and APAC Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Well and APAC Resources Limited, you can compare the effects of market volatilities on Bitcoin Well and APAC Resources 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 Bitcoin Well with a short position of APAC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Well and APAC Resources.

Diversification Opportunities for Bitcoin Well and APAC Resources

0.36
  Correlation Coefficient

Weak diversification

The 3 months correlation between Bitcoin and APAC is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Well and APAC Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APAC Resources and Bitcoin Well 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 Bitcoin Well are associated (or correlated) with APAC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APAC Resources has no effect on the direction of Bitcoin Well i.e., Bitcoin Well and APAC Resources go up and down completely randomly.

Pair Corralation between Bitcoin Well and APAC Resources

Assuming the 90 days horizon Bitcoin Well is expected to generate 10.65 times more return on investment than APAC Resources. However, Bitcoin Well is 10.65 times more volatile than APAC Resources Limited. It trades about 0.18 of its potential returns per unit of risk. APAC Resources Limited is currently generating about 0.13 per unit of risk. If you would invest  5.86  in Bitcoin Well on September 3, 2024 and sell it today you would earn a total of  10.14  from holding Bitcoin Well or generate 173.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy89.06%
ValuesDaily Returns

Bitcoin Well  vs.  APAC Resources Limited

 Performance 
       Timeline  
Bitcoin Well 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Well are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Bitcoin Well reported solid returns over the last few months and may actually be approaching a breakup point.
APAC Resources 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
OK
Over the last 90 days APAC Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly conflicting fundamental indicators, APAC Resources may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Bitcoin Well and APAC Resources Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bitcoin Well and APAC Resources

The main advantage of trading using opposite Bitcoin Well and APAC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Well position performs unexpectedly, APAC Resources 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 APAC Resources will offset losses from the drop in APAC Resources' long position.
The idea behind Bitcoin Well and APAC Resources Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA