Correlation Between Galore Resources and Apex Resources

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

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

Diversification Opportunities for Galore Resources and Apex Resources

0.28

Correlation Coefficient

Galore Resources  Apex Resources

Modest diversification

The 3 months correlation between Galore and Apex is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Galore Resources and Apex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Resources and Galore 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 Galore Resources 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 Galore Resources i.e., Galore Resources and Apex Resources go up and down completely randomly.

Pair Corralation between Galore Resources and Apex Resources

Assuming the 90 days horizon Galore Resources is expected to generate 19.03 times less return on investment than Apex Resources. But when comparing it to its historical volatility, Galore Resources is 4.24 times less risky than Apex Resources. It trades about 0.02 of its potential returns per unit of risk. Apex Resources is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  5.58  in Apex Resources on August 13, 2025 and sell it today you would lose (1.58) from holding Apex Resources or give up 28.32% of portfolio value over 90 days.

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

Galore Resources  vs.  Apex Resources

Galore Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Galore Resources are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Galore Resources may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Apex Resources

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Apex Resources are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Apex Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Galore Resources and Apex Resources

The main advantage of trading using opposite Galore Resources and Apex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galore Resources 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 Galore Resources 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.

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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.