Correlation Between Global Ferronickel and Apex Mining

Can any of the company-specific risk be diversified away by investing in both Global Ferronickel and Apex Mining 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 Global Ferronickel and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Ferronickel Holdings and Apex Mining Co, you can compare the effects of market volatilities on Global Ferronickel and Apex Mining 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 Global Ferronickel with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ferronickel and Apex Mining.

Diversification Opportunities for Global Ferronickel and Apex Mining

0.11

Correlation Coefficient

Global Ferronickel  Apex Mining

Average diversification

The 3 months correlation between Global and Apex is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Global Ferronickel Holdings and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Global Ferronickel 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 Global Ferronickel Holdings are associated (or correlated) with Apex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Mining has no effect on the direction of Global Ferronickel i.e., Global Ferronickel and Apex Mining go up and down completely randomly.

Pair Corralation between Global Ferronickel and Apex Mining

Assuming the 90 days trading horizon Global Ferronickel Holdings is expected to generate 3.35 times more return on investment than Apex Mining. However, Global Ferronickel is 3.35 times more volatile than Apex Mining Co. It trades about 0.08 of its potential returns per unit of risk. Apex Mining Co is currently generating about -0.11 per unit of risk. If you would invest  113.00  in Global Ferronickel Holdings on April 9, 2025 and sell it today you would earn a total of  10.00  from holding Global Ferronickel Holdings or generate 8.85% return on investment over 90 days.

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

Global Ferronickel Holdings  vs.  Apex Mining Co

Global Ferronickel

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Ferronickel Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Global Ferronickel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Apex Mining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apex Mining Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Apex Mining may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Global Ferronickel and Apex Mining

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

The idea behind Global Ferronickel Holdings and Apex Mining Co 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.