Correlation Between APAC Resources and ProConcept Marketing

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

Diversification Opportunities for APAC Resources and ProConcept Marketing

0.08

Correlation Coefficient

APAC Resources  ProConcept Marketing

Significant diversification

The 3 months correlation between APAC and ProConcept is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding APAC Resources Limited and ProConcept Marketing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProConcept Marketing 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 ProConcept Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProConcept Marketing has no effect on the direction of APAC Resources i.e., APAC Resources and ProConcept Marketing go up and down completely randomly.

Pair Corralation between APAC Resources and ProConcept Marketing

Assuming the 90 days horizon APAC Resources Limited is expected to under-perform the ProConcept Marketing. But the pink sheet apears to be less risky and, when comparing its historical volatility, APAC Resources Limited is 6.06 times less risky than ProConcept Marketing. The pink sheet trades about -0.17 of its potential returns per unit of risk. The ProConcept Marketing Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  8.94  in ProConcept Marketing Group on May 6, 2025 and sell it today you would lose (7.84) from holding ProConcept Marketing Group or give up 87.7% of portfolio value over 90 days.

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

APAC Resources Limited  vs.  ProConcept Marketing Group

APAC Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days APAC Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ProConcept Marketing

Risk-Adjusted Performance

Very Weak

Over the last 90 days ProConcept Marketing Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with APAC Resources and ProConcept Marketing

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

The idea behind APAC Resources Limited and ProConcept Marketing Group 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.