Correlation Between Ayala Land and Philex Mining
Can any of the company-specific risk be diversified away by investing in both Ayala Land and Philex 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 Ayala Land and Philex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ayala Land and Philex Mining Corp, you can compare the effects of market volatilities on Ayala Land and Philex 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 Ayala Land with a short position of Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayala Land and Philex Mining.
Diversification Opportunities for Ayala Land and Philex Mining
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ayala and Philex is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ayala Land and Philex Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philex Mining Corp and Ayala Land 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 Ayala Land are associated (or correlated) with Philex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philex Mining Corp has no effect on the direction of Ayala Land i.e., Ayala Land and Philex Mining go up and down completely randomly.
Pair Corralation between Ayala Land and Philex Mining
Assuming the 90 days trading horizon Ayala Land is expected to generate 1.15 times more return on investment than Philex Mining. However, Ayala Land is 1.15 times more volatile than Philex Mining Corp. It trades about -0.26 of its potential returns per unit of risk. Philex Mining Corp is currently generating about -0.3 per unit of risk. If you would invest 3,271 in Ayala Land on September 3, 2024 and sell it today you would lose (411.00) from holding Ayala Land or give up 12.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ayala Land vs. Philex Mining Corp
Performance |
| Timeline |
| Ayala Land |
| Philex Mining Corp |
Ayala Land and Philex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ayala Land and Philex Mining
The main advantage of trading using opposite Ayala Land and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ayala Land position performs unexpectedly, Philex 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 Philex Mining will offset losses from the drop in Philex Mining's long position.| Ayala Land vs. Metro Retail Stores | Ayala Land vs. Manila Mining Corp | Ayala Land vs. Alliance Select Foods | Ayala Land vs. COL Financial Group |
| Philex Mining vs. Lepanto Consolidated Mining | Philex Mining vs. Converge Information Communications | Philex Mining vs. Semirara Mining Corp | Philex Mining vs. Atlas Consolidated Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |