Correlation Between Manila Mining and Union Bank
Can any of the company-specific risk be diversified away by investing in both Manila Mining and Union Bank 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 Union Bank 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 Union Bank of, you can compare the effects of market volatilities on Manila Mining and Union Bank 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 Union Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Mining and Union Bank.
Diversification Opportunities for Manila Mining and Union Bank
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Manila and Union is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Manila Mining Corp and Union Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Bank 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 Union Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Bank has no effect on the direction of Manila Mining i.e., Manila Mining and Union Bank go up and down completely randomly.
Pair Corralation between Manila Mining and Union Bank
Assuming the 90 days trading horizon Manila Mining Corp is expected to generate 2.0 times more return on investment than Union Bank. However, Manila Mining is 2.0 times more volatile than Union Bank of. It trades about 0.04 of its potential returns per unit of risk. Union Bank of is currently generating about -0.05 per unit of risk. If you would invest 0.32 in Manila Mining Corp on October 24, 2024 and sell it today you would earn a total of 0.01 from holding Manila Mining Corp or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 57.5% |
| Values | Daily Returns |
Manila Mining Corp vs. Union Bank of
Performance |
| Timeline |
| Manila Mining Corp |
| Union Bank |
Manila Mining and Union Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manila Mining and Union Bank
The main advantage of trading using opposite Manila Mining and Union Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Mining position performs unexpectedly, Union Bank 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 Union Bank will offset losses from the drop in Union Bank's long position.| Manila Mining vs. National Reinsurance | Manila Mining vs. Philippine Business Bank | Manila Mining vs. Metropolitan Bank Trust | Manila Mining vs. Security Bank Corp |
| Union Bank vs. BDO Unibank | Union Bank vs. Manila Mining Corp | Union Bank vs. Security Bank Corp | Union Bank vs. COL Financial Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets |