Correlation Between Philex Mining and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both Philex Mining and Integrated Micro 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 Integrated Micro 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 Integrated Micro Electronics, you can compare the effects of market volatilities on Philex Mining and Integrated Micro 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 Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Integrated Micro.
Diversification Opportunities for Philex Mining and Integrated Micro
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Philex and Integrated is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele 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 Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Philex Mining i.e., Philex Mining and Integrated Micro go up and down completely randomly.
Pair Corralation between Philex Mining and Integrated Micro
Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the Integrated Micro. But the stock apears to be less risky and, when comparing its historical volatility, Philex Mining Corp is 1.26 times less risky than Integrated Micro. The stock trades about -0.42 of its potential returns per unit of risk. The Integrated Micro Electronics is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 176.00 in Integrated Micro Electronics on August 29, 2024 and sell it today you would lose (10.00) from holding Integrated Micro Electronics or give up 5.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philex Mining Corp vs. Integrated Micro Electronics
Performance |
| Timeline |
| Philex Mining Corp |
| Integrated Micro Ele |
Philex Mining and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and Integrated Micro
The main advantage of trading using opposite Philex Mining and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, Integrated Micro 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 Integrated Micro will offset losses from the drop in Integrated Micro's long position.| Philex Mining vs. Pacificonline Systems | Philex Mining vs. BDO Unibank | Philex Mining vs. Metropolitan Bank Trust | Philex Mining vs. Converge Information Communications |
| Integrated Micro vs. Allhome Corp | Integrated Micro vs. Jollibee Foods Corp | Integrated Micro vs. LFM Properties Corp | Integrated Micro vs. PXP Energy Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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