Correlation Between THE PHILIPPINE and Apex Mining
Can any of the company-specific risk be diversified away by investing in both THE PHILIPPINE and Apex 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 THE PHILIPPINE and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THE PHILIPPINE STOCK and Apex Mining Co, you can compare the effects of market volatilities on THE PHILIPPINE and Apex 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 THE PHILIPPINE with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of THE PHILIPPINE and Apex Mining.
Diversification Opportunities for THE PHILIPPINE and Apex Mining
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between THE and Apex is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding THE PHILIPPINE STOCK and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and THE PHILIPPINE 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 THE PHILIPPINE STOCK are associated (or correlated) with Apex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Mining has no effect on the direction of THE PHILIPPINE i.e., THE PHILIPPINE and Apex Mining go up and down completely randomly.
Pair Corralation between THE PHILIPPINE and Apex Mining
Assuming the 90 days trading horizon THE PHILIPPINE STOCK is expected to generate 0.77 times more return on investment than Apex Mining. However, THE PHILIPPINE STOCK is 1.29 times less risky than Apex Mining. It trades about -0.23 of its potential returns per unit of risk. Apex Mining Co is currently generating about -0.37 per unit of risk. If you would invest 734,324 in THE PHILIPPINE STOCK on August 28, 2024 and sell it today you would lose (49,324) from holding THE PHILIPPINE STOCK or give up 6.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
THE PHILIPPINE STOCK vs. Apex Mining Co
Performance |
| Timeline |
THE PHILIPPINE and Apex Mining Volatility Contrast
Predicted Return Density |
| Returns |
THE PHILIPPINE STOCK
Pair trading matchups for THE PHILIPPINE
Apex Mining Co
Pair trading matchups for Apex Mining
Pair Trading with THE PHILIPPINE and Apex Mining
The main advantage of trading using opposite THE PHILIPPINE and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THE PHILIPPINE position performs unexpectedly, Apex 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 Apex Mining will offset losses from the drop in Apex Mining's long position.| THE PHILIPPINE vs. Philex Mining Corp | THE PHILIPPINE vs. Semirara Mining Corp | THE PHILIPPINE vs. Manila Mining Corp | THE PHILIPPINE vs. Converge Information Communications |
| Apex Mining vs. Century Pacific Food | Apex Mining vs. Bank of the | Apex Mining vs. Philippine Business Bank | Apex Mining vs. Sun Life Financial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |