Correlation Between Apex Mining and Rizal Commercial

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

Diversification Opportunities for Apex Mining and Rizal Commercial

-0.14

Correlation Coefficient

Apex Mining  Rizal Commercial

Good diversification

The 3 months correlation between Apex and Rizal is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Rizal Commercial Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rizal Commercial Banking 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 Rizal Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rizal Commercial Banking has no effect on the direction of Apex Mining i.e., Apex Mining and Rizal Commercial go up and down completely randomly.

Pair Corralation between Apex Mining and Rizal Commercial

Assuming the 90 days trading horizon Apex Mining Co is expected to under-perform the Rizal Commercial. In addition to that, Apex Mining is 2.39 times more volatile than Rizal Commercial Banking. It trades about -0.07 of its total potential returns per unit of risk. Rizal Commercial Banking is currently generating about -0.02 per unit of volatility. If you would invest  2,575  in Rizal Commercial Banking on April 22, 2025 and sell it today you would lose (65.00) from holding Rizal Commercial Banking or give up 2.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Apex Mining Co  vs.  Rizal Commercial Banking

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.

Rizal Commercial Banking

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rizal Commercial Banking has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Rizal Commercial 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 Rizal Commercial

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

The idea behind Apex Mining Co and Rizal Commercial Banking 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.