Correlation Between Cebu Air and Philex Mining
Can any of the company-specific risk be diversified away by investing in both Cebu Air 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 Cebu Air and Philex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cebu Air and Philex Mining Corp, you can compare the effects of market volatilities on Cebu Air 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 Cebu Air with a short position of Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and Philex Mining.
Diversification Opportunities for Cebu Air and Philex Mining
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cebu and Philex is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air 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 Cebu Air 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 Cebu Air 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 Cebu Air i.e., Cebu Air and Philex Mining go up and down completely randomly.
Pair Corralation between Cebu Air and Philex Mining
Assuming the 90 days trading horizon Cebu Air is expected to under-perform the Philex Mining. But the stock apears to be less risky and, when comparing its historical volatility, Cebu Air is 1.36 times less risky than Philex Mining. The stock trades about -0.21 of its potential returns per unit of risk. The Philex Mining Corp is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 282.00 in Philex Mining Corp on September 26, 2024 and sell it today you would lose (5.00) from holding Philex Mining Corp or give up 1.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cebu Air vs. Philex Mining Corp
Performance |
Timeline |
Cebu Air |
Philex Mining Corp |
Cebu Air and Philex Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cebu Air and Philex Mining
The main advantage of trading using opposite Cebu Air and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air 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.Cebu Air vs. Philex Mining Corp | Cebu Air vs. Century Pacific Food | Cebu Air vs. East West Banking | Cebu Air vs. Jollibee Foods Corp |
Philex Mining vs. Nickel Asia Corp | Philex Mining vs. Atok Big Wedge | Philex Mining vs. Atlas Consolidated Mining | Philex Mining vs. Lepanto Consolidated Mining |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |