Correlation Between Apex Mining and Atok Big

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

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

Diversification Opportunities for Apex Mining and Atok Big

-0.06

Correlation Coefficient

Apex Mining  Atok Big

Good diversification

The 3 months correlation between Apex and Atok is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Atok Big Wedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atok Big Wedge and Apex Mining 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 Apex Mining Co are associated (or correlated) with Atok Big. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atok Big Wedge has no effect on the direction of Apex Mining i.e., Apex Mining and Atok Big go up and down completely randomly.

Pair Corralation between Apex Mining and Atok Big

Assuming the 90 days trading horizon Apex Mining Co is expected to generate 0.64 times more return on investment than Atok Big. However, Apex Mining Co is 1.56 times less risky than Atok Big. It trades about -0.08 of its potential returns per unit of risk. Atok Big Wedge is currently generating about -0.1 per unit of risk. If you would invest  706.00  in Apex Mining Co on April 22, 2025 and sell it today you would lose (131.00) from holding Apex Mining Co or give up 18.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	63.93%
Values	Daily Returns

Apex Mining Co  vs.  Atok Big Wedge

Apex Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apex Mining Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental 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.

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 unsteady 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.

Pair Trading with Apex Mining and Atok Big

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

The idea behind Apex Mining Co and Atok Big Wedge 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.