Correlation Between Philex Mining and LBC Express
Can any of the company-specific risk be diversified away by investing in both Philex Mining and LBC Express 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 LBC Express 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 LBC Express Holdings, you can compare the effects of market volatilities on Philex Mining and LBC Express 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 LBC Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and LBC Express.
Diversification Opportunities for Philex Mining and LBC Express
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Philex and LBC is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and LBC Express Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBC Express Holdings 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 LBC Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBC Express Holdings has no effect on the direction of Philex Mining i.e., Philex Mining and LBC Express go up and down completely randomly.
Pair Corralation between Philex Mining and LBC Express
Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the LBC Express. But the stock apears to be less risky and, when comparing its historical volatility, Philex Mining Corp is 1.34 times less risky than LBC Express. The stock trades about -0.3 of its potential returns per unit of risk. The LBC Express Holdings is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,130 in LBC Express Holdings on September 2, 2024 and sell it today you would lose (20.00) from holding LBC Express Holdings or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
Philex Mining Corp vs. LBC Express Holdings
Performance |
| Timeline |
| Philex Mining Corp |
| LBC Express Holdings |
Philex Mining and LBC Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and LBC Express
The main advantage of trading using opposite Philex Mining and LBC Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, LBC Express 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 LBC Express will offset losses from the drop in LBC Express' 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 |
| LBC Express vs. Metro Retail Stores | LBC Express vs. BDO Unibank | LBC Express vs. Bank of the | LBC Express vs. Transpacific Broadband 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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