Correlation Between Philex Mining and Cebu Landmasters
Can any of the company-specific risk be diversified away by investing in both Philex Mining and Cebu Landmasters 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 Cebu Landmasters 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 Cebu Landmasters, you can compare the effects of market volatilities on Philex Mining and Cebu Landmasters 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 Cebu Landmasters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Cebu Landmasters.
Diversification Opportunities for Philex Mining and Cebu Landmasters
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Philex and Cebu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Cebu Landmasters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cebu Landmasters 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 Cebu Landmasters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cebu Landmasters has no effect on the direction of Philex Mining i.e., Philex Mining and Cebu Landmasters go up and down completely randomly.
Pair Corralation between Philex Mining and Cebu Landmasters
Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the Cebu Landmasters. In addition to that, Philex Mining is 1.51 times more volatile than Cebu Landmasters. It trades about -0.01 of its total potential returns per unit of risk. Cebu Landmasters is currently generating about 0.04 per unit of volatility. If you would invest 239.00 in Cebu Landmasters on September 2, 2024 and sell it today you would earn a total of 30.00 from holding Cebu Landmasters or generate 12.55% 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. Cebu Landmasters
Performance |
| Timeline |
| Philex Mining Corp |
| Cebu Landmasters |
Philex Mining and Cebu Landmasters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and Cebu Landmasters
The main advantage of trading using opposite Philex Mining and Cebu Landmasters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, Cebu Landmasters 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 Cebu Landmasters will offset losses from the drop in Cebu Landmasters' long position.| Philex Mining vs. Security Bank Corp | Philex Mining vs. BDO Unibank | Philex Mining vs. COL Financial Group | Philex Mining vs. Converge Information Communications |
| Cebu Landmasters vs. Lepanto Consolidated Mining | Cebu Landmasters vs. Rizal Commercial Banking | Cebu Landmasters vs. Philex Mining Corp | Cebu Landmasters 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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