Correlation Between Philex Mining and Apollo Global
Can any of the company-specific risk be diversified away by investing in both Philex Mining and Apollo Global 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 Philex Mining and Apollo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philex Mining Corp and Apollo Global Capital, you can compare the effects of market volatilities on Philex Mining and Apollo Global 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 Philex Mining with a short position of Apollo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Apollo Global.
Diversification Opportunities for Philex Mining and Apollo Global
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Philex and Apollo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Apollo Global Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Global Capital and Philex 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 Philex Mining Corp are associated (or correlated) with Apollo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Global Capital has no effect on the direction of Philex Mining i.e., Philex Mining and Apollo Global go up and down completely randomly.
Pair Corralation between Philex Mining and Apollo Global
Assuming the 90 days trading horizon Philex Mining is expected to generate 3.43 times less return on investment than Apollo Global. But when comparing it to its historical volatility, Philex Mining Corp is 5.68 times less risky than Apollo Global. It trades about 0.42 of its potential returns per unit of risk. Apollo Global Capital is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 0.34 in Apollo Global Capital on October 20, 2024 and sell it today you would earn a total of 0.19 from holding Apollo Global Capital or generate 55.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philex Mining Corp vs. Apollo Global Capital
Performance |
| Timeline |
| Philex Mining Corp |
| Apollo Global Capital |
Philex Mining and Apollo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and Apollo Global
The main advantage of trading using opposite Philex Mining and Apollo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, Apollo Global 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 Apollo Global will offset losses from the drop in Apollo Global's long position.| Philex Mining vs. COL Financial Group | Philex Mining vs. Transpacific Broadband Group | Philex Mining vs. Globe Telecom | Philex Mining vs. Philippine Business Bank |
| Apollo Global vs. Nickel Asia Corp | Apollo Global vs. Philex Mining Corp | Apollo Global vs. Atlas Consolidated Mining | Apollo Global 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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