Correlation Between APN Convenience and Firetail Resources

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

By analyzing existing cross correlation between APN Convenience Retail and Firetail Resources, you can compare the effects of market volatilities on APN Convenience and Firetail Resources 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 APN Convenience with a short position of Firetail Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of APN Convenience and Firetail Resources.

Diversification Opportunities for APN Convenience and Firetail Resources

0.0

Correlation Coefficient

APN Convenience  Firetail Resources

Pay attention - limited upside

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

Pair Corralation between APN Convenience and Firetail Resources

If you would invest (100.00) in APN Convenience Retail on December 29, 2024 and sell it today you would earn a total of  100.00  from holding APN Convenience Retail 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

APN Convenience Retail  vs.  Firetail Resources

APN Convenience Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days APN Convenience Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, APN Convenience is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Firetail Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Firetail Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with APN Convenience and Firetail Resources

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

The idea behind APN Convenience Retail and Firetail Resources 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.