Correlation Between ENEX Energy and Philex Mining
Can any of the company-specific risk be diversified away by investing in both ENEX Energy 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 ENEX Energy and Philex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENEX Energy Corp and Philex Mining Corp, you can compare the effects of market volatilities on ENEX Energy 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 ENEX Energy with a short position of Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENEX Energy and Philex Mining.
Diversification Opportunities for ENEX Energy and Philex Mining
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ENEX and Philex is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ENEX Energy Corp 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 ENEX Energy 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 ENEX Energy Corp 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 ENEX Energy i.e., ENEX Energy and Philex Mining go up and down completely randomly.
Pair Corralation between ENEX Energy and Philex Mining
If you would invest 283.00 in Philex Mining Corp on September 14, 2024 and sell it today you would earn a total of 2.00 from holding Philex Mining Corp or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.21% |
| Values | Daily Returns |
ENEX Energy Corp vs. Philex Mining Corp
Performance |
| Timeline |
| ENEX Energy Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Philex Mining Corp |
ENEX Energy and Philex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENEX Energy and Philex Mining
The main advantage of trading using opposite ENEX Energy and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENEX Energy 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.| ENEX Energy vs. Lepanto Consolidated Mining | ENEX Energy vs. Philex Mining Corp | ENEX Energy vs. East West Banking | ENEX Energy vs. Union Bank of |
| Philex Mining vs. Apex Mining Co | Philex Mining vs. Top Frontier Investment | Philex Mining vs. Asia United Bank | Philex Mining vs. Converge Information Communications |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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