Correlation Between APAC Resources and Argo Blockchain

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

By analyzing existing cross correlation between APAC Resources Limited and Argo Blockchain PLC, you can compare the effects of market volatilities on APAC Resources and Argo Blockchain 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 Resources with a short position of Argo Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of APAC Resources and Argo Blockchain.

Diversification Opportunities for APAC Resources and Argo Blockchain

0.0

Correlation Coefficient

APAC Resources  Argo Blockchain

Pay attention - limited upside

The 3 months correlation between APAC and Argo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding APAC Resources Limited and Argo Blockchain PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Blockchain PLC and APAC Resources 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 Resources Limited are associated (or correlated) with Argo Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Blockchain PLC has no effect on the direction of APAC Resources i.e., APAC Resources and Argo Blockchain go up and down completely randomly.

Pair Corralation between APAC Resources and Argo Blockchain

If you would invest (100.00) in APAC Resources Limited on December 2, 2024 and sell it today you would earn a total of  100.00  from holding APAC Resources Limited or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

APAC Resources Limited  vs.  Argo Blockchain PLC

APAC Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days APAC Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, APAC Resources is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Argo Blockchain PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Argo Blockchain PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with APAC Resources and Argo Blockchain

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

The idea behind APAC Resources Limited and Argo Blockchain PLC 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.