Correlation Between GiveMePower Corp and APAC Resources

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

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

Diversification Opportunities for GiveMePower Corp and APAC Resources

0.26

Correlation Coefficient

GiveMePower Corp  APAC Resources

Modest diversification

The 3 months correlation between GiveMePower and APAC is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding GiveMePower Corp and APAC Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APAC Resources and GiveMePower Corp 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 GiveMePower Corp are associated (or correlated) with APAC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APAC Resources has no effect on the direction of GiveMePower Corp i.e., GiveMePower Corp and APAC Resources go up and down completely randomly.

Pair Corralation between GiveMePower Corp and APAC Resources

Given the investment horizon of 90 days GiveMePower Corp is expected to generate 1.79 times less return on investment than APAC Resources. But when comparing it to its historical volatility, GiveMePower Corp is 1.43 times less risky than APAC Resources. It trades about 0.05 of its potential returns per unit of risk. APAC Resources Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  14.00  in APAC Resources Limited on September 4, 2024 and sell it today you would lose (3.00) from holding APAC Resources Limited or give up 21.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	87.88%
Values	Daily Returns

GiveMePower Corp  vs.  APAC Resources Limited

GiveMePower Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GiveMePower Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

APAC Resources

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days APAC Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly conflicting fundamental indicators, APAC Resources may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with GiveMePower Corp and APAC Resources

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

The idea behind GiveMePower Corp and APAC Resources Limited 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.