Correlation Between Firetail Resources and APN Convenience

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

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

Diversification Opportunities for Firetail Resources and APN Convenience

0.0

Correlation Coefficient

Firetail Resources  APN Convenience

Pay attention - limited upside

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

Pair Corralation between Firetail Resources and APN Convenience

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

Firetail Resources  vs.  APN Convenience Retail

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.

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.

Pair Trading with Firetail Resources and APN Convenience

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

The idea behind Firetail Resources and APN Convenience Retail 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.