Correlation Between Union Bank and Manila Mining
Can any of the company-specific risk be diversified away by investing in both Union Bank 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 Union Bank and Manila Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Bank of and Manila Mining Corp, you can compare the effects of market volatilities on Union Bank 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 Union Bank with a short position of Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and Manila Mining.
Diversification Opportunities for Union Bank and Manila Mining
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Union and Manila is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank of 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 Union 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 Union Bank of 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 Union Bank i.e., Union Bank and Manila Mining go up and down completely randomly.
Pair Corralation between Union Bank and Manila Mining
Assuming the 90 days trading horizon Union Bank of is expected to generate 0.85 times more return on investment than Manila Mining. However, Union Bank of is 1.17 times less risky than Manila Mining. It trades about -0.16 of its potential returns per unit of risk. Manila Mining Corp is currently generating about -0.76 per unit of risk. If you would invest 3,895 in Union Bank of on August 29, 2024 and sell it today you would lose (245.00) from holding Union Bank of or give up 6.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
Union Bank of vs. Manila Mining Corp
Performance |
| Timeline |
| Union Bank |
| Manila Mining Corp |
Union Bank and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and Manila Mining
The main advantage of trading using opposite Union Bank and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank 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.| Union Bank vs. Apex Mining Co | Union Bank vs. Suntrust Home Developers | Union Bank vs. SM Investments Corp | Union Bank vs. Philex Mining Corp |
| Manila Mining vs. Crown Asia Chemicals | Manila Mining vs. Apex Mining Co | Manila Mining vs. Philex Mining Corp | Manila Mining vs. Allhome 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |