Correlation Between Philex Mining and COL Financial
Can any of the company-specific risk be diversified away by investing in both Philex Mining and COL Financial 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 COL Financial 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 COL Financial Group, you can compare the effects of market volatilities on Philex Mining and COL Financial 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 COL Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and COL Financial.
Diversification Opportunities for Philex Mining and COL Financial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Philex and COL is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and COL Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Financial Group 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 COL Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Financial Group has no effect on the direction of Philex Mining i.e., Philex Mining and COL Financial go up and down completely randomly.
Pair Corralation between Philex Mining and COL Financial
Assuming the 90 days trading horizon Philex Mining Corp is expected to generate 1.02 times more return on investment than COL Financial. However, Philex Mining is 1.02 times more volatile than COL Financial Group. It trades about 0.0 of its potential returns per unit of risk. COL Financial Group is currently generating about -0.03 per unit of risk. If you would invest 293.00 in Philex Mining Corp on September 1, 2024 and sell it today you would lose (15.00) from holding Philex Mining Corp or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.72% |
| Values | Daily Returns |
Philex Mining Corp vs. COL Financial Group
Performance |
| Timeline |
| Philex Mining Corp |
| COL Financial Group |
Philex Mining and COL Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and COL Financial
The main advantage of trading using opposite Philex Mining and COL Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, COL Financial 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 COL Financial will offset losses from the drop in COL Financial's long position.| Philex Mining vs. Figaro Coffee Group | Philex Mining vs. Lepanto Consolidated Mining | Philex Mining vs. Cebu Air Preferred | Philex Mining vs. SM Investments Corp |
| COL Financial vs. Bright Kindle Resources | COL Financial vs. Allhome Corp | COL Financial vs. LFM Properties Corp | COL Financial vs. Altus Property Ventures |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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