Correlation Between Apex Mining and Swift Foods

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

Diversification Opportunities for Apex Mining and Swift Foods

0.0

Correlation Coefficient

Apex Mining  Swift Foods

Pay attention - limited upside

The 3 months correlation between Apex and Swift is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Swift Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Foods 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 Swift Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Foods has no effect on the direction of Apex Mining i.e., Apex Mining and Swift Foods go up and down completely randomly.

Pair Corralation between Apex Mining and Swift Foods

Assuming the 90 days trading horizon Apex Mining Co is expected to under-perform the Swift Foods. But the stock apears to be less risky and, when comparing its historical volatility, Apex Mining Co is 2.56 times less risky than Swift Foods. The stock trades about -0.07 of its potential returns per unit of risk. The Swift Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  4.90  in Swift Foods on April 21, 2025 and sell it today you would earn a total of  0.10  from holding Swift Foods or generate 2.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	64.52%
Values	Daily Returns

Apex Mining Co  vs.  Swift Foods

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.

Swift Foods

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swift Foods are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Swift Foods exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Apex Mining and Swift Foods

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

The idea behind Apex Mining Co and Swift Foods 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.