Correlation Between APAC Resources and Bitcoin Well

Can any of the company-specific risk be diversified away by investing in both APAC Resources and Bitcoin Well 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 APAC Resources and Bitcoin Well into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between APAC Resources Limited and Bitcoin Well, you can compare the effects of market volatilities on APAC Resources and Bitcoin Well 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 APAC Resources with a short position of Bitcoin Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of APAC Resources and Bitcoin Well.

Diversification Opportunities for APAC Resources and Bitcoin Well

0.3

Correlation Coefficient

APAC Resources  Bitcoin Well

Weak diversification

The 3 months correlation between APAC and Bitcoin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding APAC Resources Limited and Bitcoin Well in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Well and APAC Resources 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 APAC Resources Limited are associated (or correlated) with Bitcoin Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Well has no effect on the direction of APAC Resources i.e., APAC Resources and Bitcoin Well go up and down completely randomly.

Pair Corralation between APAC Resources and Bitcoin Well

Assuming the 90 days horizon APAC Resources Limited is expected to under-perform the Bitcoin Well. But the pink sheet apears to be less risky and, when comparing its historical volatility, APAC Resources Limited is 11.64 times less risky than Bitcoin Well. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Bitcoin Well is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Bitcoin Well on July 20, 2025 and sell it today you would lose (2.56) from holding Bitcoin Well or give up 23.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

APAC Resources Limited  vs.  Bitcoin Well

APAC Resources

Risk-Adjusted Performance

Weakest

Over the last 90 days APAC Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, APAC Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Bitcoin Well

Risk-Adjusted Performance

Weakest

Over the last 90 days Bitcoin Well has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bitcoin Well is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with APAC Resources and Bitcoin Well

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

The idea behind APAC Resources Limited and Bitcoin Well 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.