Correlation Between Apex Mining and Philippine National
Can any of the company-specific risk be diversified away by investing in both Apex Mining and Philippine National 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 Apex Mining and Philippine National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apex Mining Co and Philippine National Bank, you can compare the effects of market volatilities on Apex Mining and Philippine National 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 Apex Mining with a short position of Philippine National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Mining and Philippine National.
Diversification Opportunities for Apex Mining and Philippine National
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apex and Philippine is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Apex Mining Co and Philippine National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philippine National Bank and Apex Mining 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 Apex Mining Co are associated (or correlated) with Philippine National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philippine National Bank has no effect on the direction of Apex Mining i.e., Apex Mining and Philippine National go up and down completely randomly.
Pair Corralation between Apex Mining and Philippine National
Assuming the 90 days trading horizon Apex Mining Co is expected to under-perform the Philippine National. In addition to that, Apex Mining is 1.02 times more volatile than Philippine National Bank. It trades about -0.39 of its total potential returns per unit of risk. Philippine National Bank is currently generating about -0.13 per unit of volatility. If you would invest 2,740 in Philippine National Bank on September 5, 2024 and sell it today you would lose (145.00) from holding Philippine National Bank or give up 5.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Mining Co vs. Philippine National Bank
Performance |
| Timeline |
| Apex Mining |
| Philippine National Bank |
Apex Mining and Philippine National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Mining and Philippine National
The main advantage of trading using opposite Apex Mining and Philippine National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Mining position performs unexpectedly, Philippine National 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 Philippine National will offset losses from the drop in Philippine National's long position.| Apex Mining vs. Manila Mining Corp | Apex Mining vs. Philippine Savings Bank | Apex Mining vs. Atlas Consolidated Mining | Apex Mining vs. Lepanto Consolidated Mining |
| Philippine National vs. Jollibee Foods Corp | Philippine National vs. Premiere Entertainment | Philippine National vs. Semirara Mining Corp | Philippine National vs. Apex Mining Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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