Correlation Between Philex Mining and Robinsons Retail
Can any of the company-specific risk be diversified away by investing in both Philex Mining and Robinsons Retail 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 Robinsons Retail 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 Robinsons Retail Holdings, you can compare the effects of market volatilities on Philex Mining and Robinsons Retail 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 Robinsons Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Robinsons Retail.
Diversification Opportunities for Philex Mining and Robinsons Retail
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Philex and Robinsons is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail 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 Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Philex Mining i.e., Philex Mining and Robinsons Retail go up and down completely randomly.
Pair Corralation between Philex Mining and Robinsons Retail
Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the Robinsons Retail. In addition to that, Philex Mining is 1.39 times more volatile than Robinsons Retail Holdings. It trades about -0.02 of its total potential returns per unit of risk. Robinsons Retail Holdings is currently generating about 0.03 per unit of volatility. If you would invest 3,402 in Robinsons Retail Holdings on August 29, 2024 and sell it today you would earn a total of 238.00 from holding Robinsons Retail Holdings or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philex Mining Corp vs. Robinsons Retail Holdings
Performance |
| Timeline |
| Philex Mining Corp |
| Robinsons Retail Holdings |
Philex Mining and Robinsons Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and Robinsons Retail
The main advantage of trading using opposite Philex Mining and Robinsons Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, Robinsons Retail 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 Robinsons Retail will offset losses from the drop in Robinsons Retail's long position.| Philex Mining vs. Atlas Consolidated Mining | Philex Mining vs. Robinsons Retail Holdings | Philex Mining vs. Prime Media Holdings | Philex Mining vs. Premiere Entertainment |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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