Correlation Between Apex Mining and Dito CME

Can any of the company-specific risk be diversified away by investing in both Apex Mining and Dito CME 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 Dito CME 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 Dito CME Holdings, you can compare the effects of market volatilities on Apex Mining and Dito CME 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 Dito CME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Dito CME.

Diversification Opportunities for Apex Mining and Dito CME

0.16

Correlation Coefficient

Apex Mining  Dito CME

Average diversification

The 3 months correlation between Apex and Dito is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Dito CME Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dito CME Holdings 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 Dito CME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dito CME Holdings has no effect on the direction of Apex Mining i.e., Apex Mining and Dito CME go up and down completely randomly.

Pair Corralation between Apex Mining and Dito CME

Assuming the 90 days trading horizon Apex Mining Co is expected to generate 1.36 times more return on investment than Dito CME. However, Apex Mining is 1.36 times more volatile than Dito CME Holdings. It trades about -0.02 of its potential returns per unit of risk. Dito CME Holdings is currently generating about -0.18 per unit of risk. If you would invest  680.00  in Apex Mining Co on April 25, 2025 and sell it today you would lose (55.00) from holding Apex Mining Co or give up 8.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Apex Mining Co  vs.  Dito CME Holdings

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 rather sound technical and fundamental indicators, Apex Mining is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Dito CME Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dito CME Holdings 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 comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Apex Mining and Dito CME

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

The idea behind Apex Mining Co and Dito CME Holdings 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.