Correlation Between Union Bank and Apex Mining
Can any of the company-specific risk be diversified away by investing in both Union Bank and Apex Mining 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 Union Bank and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Bank of and Apex Mining Co, you can compare the effects of market volatilities on Union Bank and Apex Mining 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 Union Bank with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and Apex Mining.
Diversification Opportunities for Union Bank and Apex Mining
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Union and Apex is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank of and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Union Bank 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 Union Bank of are associated (or correlated) with Apex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Mining has no effect on the direction of Union Bank i.e., Union Bank and Apex Mining go up and down completely randomly.
Pair Corralation between Union Bank and Apex Mining
Assuming the 90 days trading horizon Union Bank of is expected to under-perform the Apex Mining. But the stock apears to be less risky and, when comparing its historical volatility, Union Bank of is 2.98 times less risky than Apex Mining. The stock trades about -0.15 of its potential returns per unit of risk. The Apex Mining Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 857.00 in Apex Mining Co on September 12, 2025 and sell it today you would earn a total of 263.00 from holding Apex Mining Co or generate 30.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Bank of vs. Apex Mining Co
Performance |
| Timeline |
| Union Bank |
| Apex Mining |
Union Bank and Apex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and Apex Mining
The main advantage of trading using opposite Union Bank and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank position performs unexpectedly, Apex Mining 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 Apex Mining will offset losses from the drop in Apex Mining's long position.| Union Bank vs. Apex Mining Co | Union Bank vs. Semirara Mining Corp | Union Bank vs. Converge Information Communications | Union Bank vs. Suntrust Home Developers |
| Apex Mining vs. Crown Asia Chemicals | Apex Mining vs. Lepanto Consolidated Mining | Apex Mining vs. STI Education Systems | Apex Mining vs. Top Frontier Investment |
Check out your portfolio center.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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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