Correlation Between Del Monte and Apex Mining

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

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

Diversification Opportunities for Del Monte and Apex Mining

0.76

Correlation Coefficient

Del Monte  Apex Mining

Poor diversification

The 3 months correlation between Del and Apex is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Del Monte Pacific and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Del Monte 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 Del Monte Pacific 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 Del Monte i.e., Del Monte and Apex Mining go up and down completely randomly.

Pair Corralation between Del Monte and Apex Mining

Assuming the 90 days trading horizon Del Monte is expected to generate 1.57 times less return on investment than Apex Mining. In addition to that, Del Monte is 1.69 times more volatile than Apex Mining Co. It trades about 0.12 of its total potential returns per unit of risk. Apex Mining Co is currently generating about 0.33 per unit of volatility. If you would invest  585.00  in Apex Mining Co on July 9, 2025 and sell it today you would earn a total of  483.00  from holding Apex Mining Co or generate 82.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	85.71%
Values	Daily Returns

Del Monte Pacific  vs.  Apex Mining Co

Del Monte Pacific

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Del Monte Pacific are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Del Monte unveiled solid returns over the last few months and may actually be approaching a breakup point.

Apex Mining

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Apex Mining Co are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Apex Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Del Monte and Apex Mining

The main advantage of trading using opposite Del Monte and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Del Monte 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 Del Monte Pacific 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..