Correlation Between Manila Mining and Balai Ni
Can any of the company-specific risk be diversified away by investing in both Manila Mining and Balai Ni 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 Balai Ni 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 Balai Ni Fruitas, you can compare the effects of market volatilities on Manila Mining and Balai Ni 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 Balai Ni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Mining and Balai Ni.
Diversification Opportunities for Manila Mining and Balai Ni
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Manila and Balai is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Manila Mining Corp and Balai Ni Fruitas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balai Ni Fruitas 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 Balai Ni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balai Ni Fruitas has no effect on the direction of Manila Mining i.e., Manila Mining and Balai Ni go up and down completely randomly.
Pair Corralation between Manila Mining and Balai Ni
Assuming the 90 days trading horizon Manila Mining Corp is expected to generate 2.41 times more return on investment than Balai Ni. However, Manila Mining is 2.41 times more volatile than Balai Ni Fruitas. It trades about 0.38 of its potential returns per unit of risk. Balai Ni Fruitas is currently generating about 0.06 per unit of risk. If you would invest 0.30 in Manila Mining Corp on December 1, 2024 and sell it today you would earn a total of 0.13 from holding Manila Mining Corp or generate 43.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.0% |
| Values | Daily Returns |
Manila Mining Corp vs. Balai Ni Fruitas
Performance |
| Timeline |
| Manila Mining Corp |
| Balai Ni Fruitas |
Manila Mining and Balai Ni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manila Mining and Balai Ni
The main advantage of trading using opposite Manila Mining and Balai Ni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Mining position performs unexpectedly, Balai Ni 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 Balai Ni will offset losses from the drop in Balai Ni's long position.| Manila Mining vs. Apex Mining Co | Manila Mining vs. Lepanto Consolidated Mining | Manila Mining vs. Converge Information Communications | Manila Mining vs. Swift Foods |
| Balai Ni vs. Atlas Consolidated Mining | Balai Ni vs. Converge Information Communications | Balai Ni vs. Robinsons Retail Holdings | Balai Ni vs. Security Bank 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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