Correlation Between NiHAO Mineral and Manila Mining
Can any of the company-specific risk be diversified away by investing in both NiHAO Mineral 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 NiHAO Mineral and Manila Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NiHAO Mineral Resources and Manila Mining Corp, you can compare the effects of market volatilities on NiHAO Mineral 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 NiHAO Mineral with a short position of Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of NiHAO Mineral and Manila Mining.
Diversification Opportunities for NiHAO Mineral and Manila Mining
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NiHAO and Manila is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding NiHAO Mineral Resources 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 NiHAO Mineral 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 NiHAO Mineral Resources 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 NiHAO Mineral i.e., NiHAO Mineral and Manila Mining go up and down completely randomly.
Pair Corralation between NiHAO Mineral and Manila Mining
Assuming the 90 days trading horizon NiHAO Mineral Resources is expected to generate 3.24 times more return on investment than Manila Mining. However, NiHAO Mineral is 3.24 times more volatile than Manila Mining Corp. It trades about -0.16 of its potential returns per unit of risk. Manila Mining Corp is currently generating about -0.6 per unit of risk. If you would invest 56.00 in NiHAO Mineral Resources on September 22, 2024 and sell it today you would lose (12.00) from holding NiHAO Mineral Resources or give up 21.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NiHAO Mineral Resources vs. Manila Mining Corp
Performance |
| Timeline |
| NiHAO Mineral Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Manila Mining Corp |
NiHAO Mineral and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NiHAO Mineral and Manila Mining
The main advantage of trading using opposite NiHAO Mineral and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NiHAO Mineral 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.| NiHAO Mineral vs. Manila Mining Corp | NiHAO Mineral vs. Robinsons Retail Holdings | NiHAO Mineral vs. Atlas Consolidated Mining | NiHAO Mineral vs. Jollibee Foods Corp |
| Manila Mining vs. Atok Big Wedge | Manila Mining vs. Philex Mining Corp | Manila Mining vs. Atlas Consolidated Mining | Manila Mining vs. Lepanto Consolidated Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |