Correlation Between Manila Mining and Aboitiz Equity
Can any of the company-specific risk be diversified away by investing in both Manila Mining and Aboitiz Equity 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 Manila Mining and Aboitiz Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manila Mining Corp and Aboitiz Equity Ventures, you can compare the effects of market volatilities on Manila Mining and Aboitiz Equity 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 Manila Mining with a short position of Aboitiz Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Mining and Aboitiz Equity.
Diversification Opportunities for Manila Mining and Aboitiz Equity
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manila and Aboitiz is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Manila Mining Corp and Aboitiz Equity Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aboitiz Equity Ventures and Manila Mining 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 Manila Mining Corp are associated (or correlated) with Aboitiz Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aboitiz Equity Ventures has no effect on the direction of Manila Mining i.e., Manila Mining and Aboitiz Equity go up and down completely randomly.
Pair Corralation between Manila Mining and Aboitiz Equity
Assuming the 90 days trading horizon Manila Mining Corp is expected to under-perform the Aboitiz Equity. But the stock apears to be less risky and, when comparing its historical volatility, Manila Mining Corp is 1.2 times less risky than Aboitiz Equity. The stock trades about -0.66 of its potential returns per unit of risk. The Aboitiz Equity Ventures is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 3,495 in Aboitiz Equity Ventures on August 31, 2024 and sell it today you would lose (195.00) from holding Aboitiz Equity Ventures or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Manila Mining Corp vs. Aboitiz Equity Ventures
Performance |
| Timeline |
| Manila Mining Corp |
| Aboitiz Equity Ventures |
Manila Mining and Aboitiz Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manila Mining and Aboitiz Equity
The main advantage of trading using opposite Manila Mining and Aboitiz Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Mining position performs unexpectedly, Aboitiz Equity 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 Aboitiz Equity will offset losses from the drop in Aboitiz Equity's long position.| Manila Mining vs. Philex Mining Corp | Manila Mining vs. Atlas Consolidated Mining | Manila Mining vs. Lepanto Consolidated Mining | Manila Mining vs. Apex Mining Co |
| Aboitiz Equity vs. Manila Mining Corp | Aboitiz Equity vs. Apex Mining Co | Aboitiz Equity vs. Semirara Mining Corp | Aboitiz Equity 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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