Correlation Between Philex Mining and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both Philex Mining and Jollibee Foods 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 Jollibee Foods 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 Jollibee Foods Corp, you can compare the effects of market volatilities on Philex Mining and Jollibee Foods 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 Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Jollibee Foods.
Diversification Opportunities for Philex Mining and Jollibee Foods
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Philex and Jollibee is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Jollibee Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods 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 Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods Corp has no effect on the direction of Philex Mining i.e., Philex Mining and Jollibee Foods go up and down completely randomly.
Pair Corralation between Philex Mining and Jollibee Foods
Assuming the 90 days trading horizon Philex Mining Corp is expected to generate 1.26 times more return on investment than Jollibee Foods. However, Philex Mining is 1.26 times more volatile than Jollibee Foods Corp. It trades about 0.3 of its potential returns per unit of risk. Jollibee Foods Corp is currently generating about -0.42 per unit of risk. If you would invest 279.00 in Philex Mining Corp on November 3, 2024 and sell it today you would earn a total of 48.00 from holding Philex Mining Corp or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philex Mining Corp vs. Jollibee Foods Corp
Performance |
| Timeline |
| Philex Mining Corp |
| Jollibee Foods Corp |
Philex Mining and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and Jollibee Foods
The main advantage of trading using opposite Philex Mining and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, Jollibee Foods 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| Philex Mining vs. Nickel Asia Corp | Philex Mining vs. Apollo Global Capital | Philex Mining vs. Atok Big Wedge | Philex Mining vs. Atlas Consolidated Mining |
| Jollibee Foods vs. Philex Mining Corp | Jollibee Foods vs. Allhome Corp | Jollibee Foods vs. East West Banking | Jollibee Foods vs. COL Financial Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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