Correlation Between Apex Mining and Asiabest Group

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

Diversification Opportunities for Apex Mining and Asiabest Group

-0.79

Correlation Coefficient

Apex Mining  Asiabest Group

Pay attention - limited upside

The 3 months correlation between Apex and Asiabest is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Asiabest Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiabest Group Inter 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 Asiabest Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiabest Group Inter has no effect on the direction of Apex Mining i.e., Apex Mining and Asiabest Group go up and down completely randomly.

Pair Corralation between Apex Mining and Asiabest Group

If you would invest (100.00) in Asiabest Group International on October 5, 2024 and sell it today you would earn a total of  100.00  from holding Asiabest Group International or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Apex Mining Co  vs.  Asiabest Group International

Apex Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apex Mining Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Asiabest Group Inter

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Apex Mining and Asiabest Group

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

The idea behind Apex Mining Co and Asiabest Group International 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.