Correlation Between APAC Resources and GiveMePower Corp

Can any of the company-specific risk be diversified away by investing in both APAC Resources and GiveMePower Corp 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 GiveMePower Corp 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 GiveMePower Corp, you can compare the effects of market volatilities on APAC Resources and GiveMePower Corp 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 GiveMePower Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of APAC Resources and GiveMePower Corp.

Diversification Opportunities for APAC Resources and GiveMePower Corp

0.0

Correlation Coefficient

APAC Resources  GiveMePower Corp

Pay attention - limited upside

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

Pair Corralation between APAC Resources and GiveMePower Corp

If you would invest  0.48  in GiveMePower Corp on December 30, 2024 and sell it today you would lose (0.01) from holding GiveMePower Corp or give up 2.08% of portfolio value over 90 days.

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

APAC Resources Limited  vs.  GiveMePower Corp

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.

GiveMePower Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GiveMePower Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, GiveMePower Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with APAC Resources and GiveMePower Corp

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

The idea behind APAC Resources Limited and GiveMePower Corp 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.