Correlation Between COL Financial and Philex Mining
Can any of the company-specific risk be diversified away by investing in both COL Financial 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 COL Financial and Philex 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 Philex Mining Corp, you can compare the effects of market volatilities on COL Financial 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 COL Financial with a short position of Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Financial and Philex Mining.
Diversification Opportunities for COL Financial and Philex Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COL and Philex is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding COL Financial Group 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 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 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 COL Financial i.e., COL Financial and Philex Mining go up and down completely randomly.
Pair Corralation between COL Financial and Philex Mining
Assuming the 90 days trading horizon COL Financial Group is expected to under-perform the Philex Mining. But the stock apears to be less risky and, when comparing its historical volatility, COL Financial Group is 1.02 times less risky than Philex Mining. The stock trades about -0.03 of its potential returns per unit of risk. The Philex Mining Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 293.00 in Philex Mining Corp on September 1, 2024 and sell it today you would lose (15.00) from holding Philex Mining Corp or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.72% |
| Values | Daily Returns |
COL Financial Group vs. Philex Mining Corp
Performance |
| Timeline |
| COL Financial Group |
| Philex Mining Corp |
COL Financial and Philex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Financial and Philex Mining
The main advantage of trading using opposite COL Financial and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Financial 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.| COL Financial vs. Bright Kindle Resources | COL Financial vs. Allhome Corp | COL Financial vs. LFM Properties Corp | COL Financial vs. Altus Property Ventures |
| Philex Mining vs. Figaro Coffee Group | Philex Mining vs. Lepanto Consolidated Mining | Philex Mining vs. Cebu Air Preferred | Philex Mining vs. SM Investments Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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