Correlation Between Union Bank and Apex Mining

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Union Bank of  vs.  Apex Mining Co

 Performance 
       Timeline  
Union Bank 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Union Bank of has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Apex Mining 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Apex Mining Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Apex Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Union Bank of and Apex Mining Co 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.
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.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
AI Portfolio Prophet
Use AI to generate optimal portfolios and find profitable investment opportunities
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios