Correlation Between Globalink Investment and APx Acquisition

Can any of the company-specific risk be diversified away by investing in both Globalink Investment and APx Acquisition 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 Globalink Investment and APx Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Globalink Investment Unit and APx Acquisition Corp, you can compare the effects of market volatilities on Globalink Investment and APx Acquisition 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 Globalink Investment with a short position of APx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalink Investment and APx Acquisition.

Diversification Opportunities for Globalink Investment and APx Acquisition

0.0

Correlation Coefficient

Globalink Investment  APx Acquisition

Pay attention - limited upside

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

Pair Corralation between Globalink Investment and APx Acquisition

Assuming the 90 days horizon Globalink Investment Unit is expected to generate 4.91 times more return on investment than APx Acquisition. However, Globalink Investment is 4.91 times more volatile than APx Acquisition Corp. It trades about 0.1 of its potential returns per unit of risk. APx Acquisition Corp is currently generating about -0.16 per unit of risk. If you would invest  1,140  in Globalink Investment Unit on September 18, 2024 and sell it today you would earn a total of  52.00  from holding Globalink Investment Unit or generate 4.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	63.49%
Values	Daily Returns

Globalink Investment Unit  vs.  APx Acquisition Corp

Globalink Investment Unit

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Globalink Investment Unit are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Globalink Investment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

APx Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days APx Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, APx Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Globalink Investment and APx Acquisition

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

The idea behind Globalink Investment Unit and APx Acquisition 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.