Correlation Between COL Financial and Manila Mining
Can any of the company-specific risk be diversified away by investing in both COL Financial and Manila 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 COL Financial and Manila Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COL Financial Group and Manila Mining Corp, you can compare the effects of market volatilities on COL Financial and Manila 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 COL Financial with a short position of Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Financial and Manila Mining.
Diversification Opportunities for COL Financial and Manila Mining
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COL and Manila is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding COL Financial Group and Manila Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Mining Corp and COL Financial 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 COL Financial Group are associated (or correlated) with Manila Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Mining Corp has no effect on the direction of COL Financial i.e., COL Financial and Manila Mining go up and down completely randomly.
Pair Corralation between COL Financial and Manila Mining
Assuming the 90 days trading horizon COL Financial Group is expected to generate 0.81 times more return on investment than Manila Mining. However, COL Financial Group is 1.23 times less risky than Manila Mining. It trades about -0.02 of its potential returns per unit of risk. Manila Mining Corp is currently generating about -0.11 per unit of risk. If you would invest 178.00 in COL Financial Group on August 29, 2024 and sell it today you would lose (6.00) from holding COL Financial Group or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
COL Financial Group vs. Manila Mining Corp
Performance |
| Timeline |
| COL Financial Group |
| Manila Mining Corp |
COL Financial and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Financial and Manila Mining
The main advantage of trading using opposite COL Financial and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Financial position performs unexpectedly, Manila 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 Manila Mining will offset losses from the drop in Manila Mining's long position.| COL Financial vs. VistaREIT | COL Financial vs. Bright Kindle Resources | COL Financial vs. Medco Holdings | COL Financial vs. Allhome Corp |
| Manila Mining vs. Nickel Asia Corp | Manila Mining vs. Apollo Global Capital | Manila Mining vs. Philex Mining Corp | Manila 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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