Correlation Between Philex Mining and Bloomberry Resorts
Can any of the company-specific risk be diversified away by investing in both Philex Mining and Bloomberry Resorts 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 Bloomberry Resorts 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 Bloomberry Resorts Corp, you can compare the effects of market volatilities on Philex Mining and Bloomberry Resorts 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 Bloomberry Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Bloomberry Resorts.
Diversification Opportunities for Philex Mining and Bloomberry Resorts
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Philex and Bloomberry is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Bloomberry Resorts Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomberry Resorts Corp 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 Bloomberry Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomberry Resorts Corp has no effect on the direction of Philex Mining i.e., Philex Mining and Bloomberry Resorts go up and down completely randomly.
Pair Corralation between Philex Mining and Bloomberry Resorts
Assuming the 90 days trading horizon Philex Mining Corp is expected to generate 1.41 times more return on investment than Bloomberry Resorts. However, Philex Mining is 1.41 times more volatile than Bloomberry Resorts Corp. It trades about 0.4 of its potential returns per unit of risk. Bloomberry Resorts Corp is currently generating about -0.1 per unit of risk. If you would invest 329.00 in Philex Mining Corp on November 28, 2024 and sell it today you would earn a total of 187.00 from holding Philex Mining Corp or generate 56.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Philex Mining Corp vs. Bloomberry Resorts Corp
Performance |
| Timeline |
| Philex Mining Corp |
| Bloomberry Resorts Corp |
Philex Mining and Bloomberry Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and Bloomberry Resorts
The main advantage of trading using opposite Philex Mining and Bloomberry Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, Bloomberry Resorts 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 Bloomberry Resorts will offset losses from the drop in Bloomberry Resorts' long position.| Philex Mining vs. Robinsons Retail Holdings | Philex Mining vs. Apex Mining Co | Philex Mining vs. Security Bank Corp | Philex Mining vs. Semirara Mining Corp |
| Bloomberry Resorts vs. Jollibee Foods Corp | Bloomberry Resorts vs. Converge Information Communications | Bloomberry Resorts vs. Lepanto Consolidated Mining | Bloomberry Resorts vs. Globe Telecom |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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