Correlation Between STI Education and Manila Mining
Can any of the company-specific risk be diversified away by investing in both STI Education and Manila 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 STI Education and Manila Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STI Education Systems and Manila Mining Corp, you can compare the effects of market volatilities on STI Education and Manila 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 STI Education with a short position of Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of STI Education and Manila Mining.
Diversification Opportunities for STI Education and Manila Mining
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between STI and Manila is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding STI Education Systems and Manila Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Mining Corp and STI Education 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 STI Education Systems are associated (or correlated) with Manila Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Mining Corp has no effect on the direction of STI Education i.e., STI Education and Manila Mining go up and down completely randomly.
Pair Corralation between STI Education and Manila Mining
Assuming the 90 days trading horizon STI Education is expected to generate 20.81 times less return on investment than Manila Mining. But when comparing it to its historical volatility, STI Education Systems is 4.27 times less risky than Manila Mining. It trades about 0.13 of its potential returns per unit of risk. Manila Mining Corp is currently generating about 0.64 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Manila Mining Corp on November 27, 2024 and sell it today you would earn a total of 0.17 from holding Manila Mining Corp or generate 56.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
STI Education Systems vs. Manila Mining Corp
Performance |
| Timeline |
| STI Education Systems |
| Manila Mining Corp |
STI Education and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STI Education and Manila Mining
The main advantage of trading using opposite STI Education and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STI Education position performs unexpectedly, Manila 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 Manila Mining will offset losses from the drop in Manila Mining's long position.| STI Education vs. Atlas Consolidated Mining | STI Education vs. Premiere Entertainment | STI Education vs. BDO Unibank | STI Education vs. Asia United Bank |
| Manila Mining vs. Metro Retail Stores | Manila Mining vs. Figaro Coffee Group | Manila Mining vs. Union Bank of | Manila Mining vs. Robinsons Retail Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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