Correlation Between Allhome Corp and Manila Mining
Can any of the company-specific risk be diversified away by investing in both Allhome Corp 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 Allhome Corp and Manila Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allhome Corp and Manila Mining Corp, you can compare the effects of market volatilities on Allhome Corp 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 Allhome Corp with a short position of Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allhome Corp and Manila Mining.
Diversification Opportunities for Allhome Corp and Manila Mining
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allhome and Manila is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Allhome Corp 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 Allhome Corp 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 Allhome Corp 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 Allhome Corp i.e., Allhome Corp and Manila Mining go up and down completely randomly.
Pair Corralation between Allhome Corp and Manila Mining
Assuming the 90 days trading horizon Allhome Corp is expected to under-perform the Manila Mining. But the stock apears to be less risky and, when comparing its historical volatility, Allhome Corp is 1.52 times less risky than Manila Mining. The stock trades about -0.12 of its potential returns per unit of risk. The Manila Mining Corp is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 0.36 in Manila Mining Corp on October 25, 2024 and sell it today you would lose (0.03) from holding Manila Mining Corp or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 44.83% |
| Values | Daily Returns |
Allhome Corp vs. Manila Mining Corp
Performance |
| Timeline |
| Allhome Corp |
| Manila Mining Corp |
Allhome Corp and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allhome Corp and Manila Mining
The main advantage of trading using opposite Allhome Corp and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allhome Corp 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.| Allhome Corp vs. Bank of the | Allhome Corp vs. COL Financial Group | Allhome Corp vs. Atlas Consolidated Mining | Allhome Corp vs. Semirara Mining Corp |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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