Correlation Between Integrated Micro and Philex Mining
Can any of the company-specific risk be diversified away by investing in both Integrated Micro 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 Integrated Micro and Philex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Micro Electronics and Philex Mining Corp, you can compare the effects of market volatilities on Integrated Micro 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 Integrated Micro with a short position of Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Micro and Philex Mining.
Diversification Opportunities for Integrated Micro and Philex Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integrated and Philex is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Micro Electronics 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 Integrated Micro 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 Integrated Micro Electronics 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 Integrated Micro i.e., Integrated Micro and Philex Mining go up and down completely randomly.
Pair Corralation between Integrated Micro and Philex Mining
Assuming the 90 days trading horizon Integrated Micro Electronics is expected to generate 1.24 times more return on investment than Philex Mining. However, Integrated Micro is 1.24 times more volatile than Philex Mining Corp. It trades about -0.13 of its potential returns per unit of risk. Philex Mining Corp is currently generating about -0.45 per unit of risk. If you would invest 178.00 in Integrated Micro Electronics on August 25, 2024 and sell it today you would lose (13.00) from holding Integrated Micro Electronics or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Micro Electronics vs. Philex Mining Corp
Performance |
| Timeline |
| Integrated Micro Ele |
| Philex Mining Corp |
Integrated Micro and Philex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Micro and Philex Mining
The main advantage of trading using opposite Integrated Micro and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Micro 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.| Integrated Micro vs. Atlas Consolidated Mining | Integrated Micro vs. STI Education Systems | Integrated Micro vs. Converge Information Communications | Integrated Micro vs. Pacificonline Systems |
| Philex Mining vs. Converge Information Communications | Philex Mining vs. Rizal Commercial Banking | Philex Mining vs. Philippine Business Bank | Philex Mining vs. East West Banking |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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