Correlation Between Apex Mining and Robinsons Retail

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

Diversification Opportunities for Apex Mining and Robinsons Retail

0.52

Correlation Coefficient

Apex Mining  Robinsons Retail

Very weak diversification

The 3 months correlation between Apex and Robinsons is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail Holdings 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 Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Apex Mining i.e., Apex Mining and Robinsons Retail go up and down completely randomly.

Pair Corralation between Apex Mining and Robinsons Retail

Assuming the 90 days trading horizon Apex Mining Co is expected to generate 1.39 times more return on investment than Robinsons Retail. However, Apex Mining is 1.39 times more volatile than Robinsons Retail Holdings. It trades about 0.28 of its potential returns per unit of risk. Robinsons Retail Holdings is currently generating about 0.04 per unit of risk. If you would invest  342.00  in Apex Mining Co on December 26, 2024 and sell it today you would earn a total of  148.00  from holding Apex Mining Co or generate 43.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Apex Mining Co  vs.  Robinsons Retail Holdings

Apex Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Apex Mining Co are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Apex Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Robinsons Retail Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Robinsons Retail Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Robinsons Retail is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Apex Mining and Robinsons Retail

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

The idea behind Apex Mining Co and Robinsons Retail Holdings 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.