Correlation Between Astro Communications and Apex Resources

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

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

Diversification Opportunities for Astro Communications and Apex Resources

0.0

Correlation Coefficient

Astro Communications  Apex Resources

Pay attention - limited upside

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

Pair Corralation between Astro Communications and Apex Resources

If you would invest  1.20  in Apex Resources on August 29, 2025 and sell it today you would earn a total of  3.80  from holding Apex Resources or generate 316.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Astro Communications  vs.  Apex Resources

Astro Communications

Risk-Adjusted Performance

Weakest

Over the last 90 days Astro Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Astro Communications is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Apex Resources

Risk-Adjusted Performance

Good

Over the last 90 days Apex Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak essential indicators, Apex Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Astro Communications and Apex Resources

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

The idea behind Astro Communications and Apex Resources 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.