Correlation Between Atok Big and Apex Mining

Can any of the company-specific risk be diversified away by investing in both Atok Big 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 Atok Big and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atok Big Wedge and Apex Mining Co, you can compare the effects of market volatilities on Atok Big 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 Atok Big with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atok Big and Apex Mining.

Diversification Opportunities for Atok Big and Apex Mining

-0.57

Correlation Coefficient

Atok Big  Apex Mining

Excellent diversification

The 3 months correlation between Atok and Apex is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Atok Big Wedge and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Atok Big 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 Atok Big Wedge 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 Atok Big i.e., Atok Big and Apex Mining go up and down completely randomly.

Pair Corralation between Atok Big and Apex Mining

Assuming the 90 days trading horizon Atok Big Wedge is expected to generate 1.98 times more return on investment than Apex Mining. However, Atok Big is 1.98 times more volatile than Apex Mining Co. It trades about -0.03 of its potential returns per unit of risk. Apex Mining Co is currently generating about -0.08 per unit of risk. If you would invest  414.00  in Atok Big Wedge on April 10, 2025 and sell it today you would lose (24.00) from holding Atok Big Wedge or give up 5.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	71.43%
Values	Daily Returns

Atok Big Wedge  vs.  Apex Mining Co

Atok Big Wedge

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atok Big Wedge 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 basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Apex Mining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apex Mining Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Apex Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Atok Big and Apex Mining

The main advantage of trading using opposite Atok Big and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atok Big 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 Atok Big Wedge 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..