Correlation Between Apex Mining and Prime Media

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

Diversification Opportunities for Apex Mining and Prime Media

0.07

Correlation Coefficient

Apex Mining  Prime Media

Significant diversification

The 3 months correlation between Apex and Prime is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Prime Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Media 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 Prime Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Media Holdings has no effect on the direction of Apex Mining i.e., Apex Mining and Prime Media go up and down completely randomly.

Pair Corralation between Apex Mining and Prime Media

Assuming the 90 days trading horizon Apex Mining Co is expected to under-perform the Prime Media. But the stock apears to be less risky and, when comparing its historical volatility, Apex Mining Co is 1.2 times less risky than Prime Media. The stock trades about -0.07 of its potential returns per unit of risk. The Prime Media Holdings is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  179.00  in Prime Media Holdings on April 20, 2025 and sell it today you would lose (29.00) from holding Prime Media Holdings or give up 16.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Apex Mining Co  vs.  Prime Media 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 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.

Prime Media Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Prime Media Holdings 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 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 Prime Media

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

The idea behind Apex Mining Co and Prime Media 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.