Correlation Between Philex Mining and Swift Foods
Can any of the company-specific risk be diversified away by investing in both Philex Mining and Swift 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 Swift 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 Swift Foods, you can compare the effects of market volatilities on Philex Mining and Swift 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 Swift Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Swift Foods.
Diversification Opportunities for Philex Mining and Swift Foods
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Philex and Swift is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Swift Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Foods 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 Swift Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Foods has no effect on the direction of Philex Mining i.e., Philex Mining and Swift Foods go up and down completely randomly.
Pair Corralation between Philex Mining and Swift Foods
Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the Swift Foods. But the stock apears to be less risky and, when comparing its historical volatility, Philex Mining Corp is 3.17 times less risky than Swift Foods. The stock trades about -0.36 of its potential returns per unit of risk. The Swift Foods is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5.90 in Swift Foods on August 29, 2024 and sell it today you would lose (0.40) from holding Swift Foods or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Philex Mining Corp vs. Swift Foods
Performance |
| Timeline |
| Philex Mining Corp |
| Swift Foods |
Philex Mining and Swift Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and Swift Foods
The main advantage of trading using opposite Philex Mining and Swift Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining position performs unexpectedly, Swift 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 Swift Foods will offset losses from the drop in Swift Foods' 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 |
| Swift Foods vs. Integrated Micro Electronics | Swift Foods vs. Semirara Mining Corp | Swift Foods vs. Robinsons Retail Holdings | Swift Foods vs. Philex Mining 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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