Correlation Between Apex Mining and Manila Bulletin

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

Diversification Opportunities for Apex Mining and Manila Bulletin

0.01

Correlation Coefficient

Apex Mining  Manila Bulletin

Significant diversification

The 3 months correlation between Apex and Manila is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Manila Bulletin Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Bulletin Publ 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 Manila Bulletin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Bulletin Publ has no effect on the direction of Apex Mining i.e., Apex Mining and Manila Bulletin go up and down completely randomly.

Pair Corralation between Apex Mining and Manila Bulletin

Assuming the 90 days trading horizon Apex Mining Co is expected to generate 0.35 times more return on investment than Manila Bulletin. However, Apex Mining Co is 2.89 times less risky than Manila Bulletin. It trades about 0.08 of its potential returns per unit of risk. Manila Bulletin Publishing is currently generating about 0.02 per unit of risk. If you would invest  261.00  in Apex Mining Co on April 24, 2025 and sell it today you would earn a total of  335.00  from holding Apex Mining Co or generate 128.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	44.56%
Values	Daily Returns

Apex Mining Co  vs.  Manila Bulletin Publishing

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 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.

Manila Bulletin Publ

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Manila Bulletin Publishing are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Manila Bulletin is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Apex Mining and Manila Bulletin

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

The idea behind Apex Mining Co and Manila Bulletin Publishing 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.