Correlation Between Security Bank and Philex Mining
Can any of the company-specific risk be diversified away by investing in both Security Bank and Philex Mining 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 Security Bank and Philex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security Bank Corp and Philex Mining Corp, you can compare the effects of market volatilities on Security Bank and Philex Mining 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 Security Bank with a short position of Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security Bank and Philex Mining.
Diversification Opportunities for Security Bank and Philex Mining
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Security and Philex is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Security Bank Corp and Philex Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philex Mining Corp and Security Bank 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 Security Bank Corp are associated (or correlated) with Philex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philex Mining Corp has no effect on the direction of Security Bank i.e., Security Bank and Philex Mining go up and down completely randomly.
Pair Corralation between Security Bank and Philex Mining
Assuming the 90 days trading horizon Security Bank is expected to generate 1.2 times less return on investment than Philex Mining. But when comparing it to its historical volatility, Security Bank Corp is 1.04 times less risky than Philex Mining. It trades about 0.02 of its potential returns per unit of risk. Philex Mining Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 313.00 in Philex Mining Corp on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Philex Mining Corp or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Security Bank Corp vs. Philex Mining Corp
Performance |
| Timeline |
| Security Bank Corp |
| Philex Mining Corp |
Security Bank and Philex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security Bank and Philex Mining
The main advantage of trading using opposite Security Bank and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security Bank position performs unexpectedly, Philex Mining 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 Philex Mining will offset losses from the drop in Philex Mining's long position.| Security Bank vs. National Reinsurance | Security Bank vs. East West Banking | Security Bank vs. STI Education Systems | Security Bank vs. Metropolitan Bank Trust |
| Philex Mining vs. Robinsons Retail Holdings | Philex Mining vs. Suntrust Home Developers | Philex Mining vs. Converge Information Communications | Philex Mining vs. Premiere Entertainment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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