Correlation Between APAC Old and Newlake Capital

Can any of the company-specific risk be diversified away by investing in both APAC Old and Newlake Capital 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 APAC Old and Newlake Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between APAC Old and Newlake Capital Partners, you can compare the effects of market volatilities on APAC Old and Newlake Capital 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 APAC Old with a short position of Newlake Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of APAC Old and Newlake Capital.

Diversification Opportunities for APAC Old and Newlake Capital

-0.63

Correlation Coefficient

APAC Old  Newlake Capital

Excellent diversification

The 3 months correlation between APAC and Newlake is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding APAC Old and Newlake Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newlake Capital Partners and APAC Old 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 APAC Old are associated (or correlated) with Newlake Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newlake Capital Partners has no effect on the direction of APAC Old i.e., APAC Old and Newlake Capital go up and down completely randomly.

Pair Corralation between APAC Old and Newlake Capital

If you would invest  1,095  in APAC Old on October 23, 2024 and sell it today you would earn a total of  0.00  from holding APAC Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.67%
Values	Daily Returns

APAC Old  vs.  Newlake Capital Partners

APAC Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days APAC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, APAC Old is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Newlake Capital Partners

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Newlake Capital Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with APAC Old and Newlake Capital

The main advantage of trading using opposite APAC Old and Newlake Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APAC Old position performs unexpectedly, Newlake Capital 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 Newlake Capital will offset losses from the drop in Newlake Capital's long position.

The idea behind APAC Old and Newlake Capital Partners 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..