Correlation Between Semirara Mining and AC Energy

Can any of the company-specific risk be diversified away by investing in both Semirara Mining and AC Energy 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 Semirara Mining and AC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Semirara Mining Corp and AC Energy Philippines, you can compare the effects of market volatilities on Semirara Mining and AC Energy 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 Semirara Mining with a short position of AC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semirara Mining and AC Energy.

Diversification Opportunities for Semirara Mining and AC Energy

0.0

Correlation Coefficient

Semirara Mining  AC Energy

Pay attention - limited upside

The 3 months correlation between Semirara and ACEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Semirara Mining Corp and AC Energy Philippines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC Energy Philippines and Semirara 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 Semirara Mining Corp are associated (or correlated) with AC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC Energy Philippines has no effect on the direction of Semirara Mining i.e., Semirara Mining and AC Energy go up and down completely randomly.

Pair Corralation between Semirara Mining and AC Energy

If you would invest  3,101  in Semirara Mining Corp on September 15, 2024 and sell it today you would earn a total of  309.00  from holding Semirara Mining Corp or generate 9.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Semirara Mining Corp  vs.  AC Energy Philippines

Semirara Mining Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Semirara Mining Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Semirara Mining may actually be approaching a critical reversion point that can send shares even higher in January 2025.

AC Energy Philippines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AC Energy Philippines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AC Energy is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Semirara Mining and AC Energy

The main advantage of trading using opposite Semirara Mining and AC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semirara Mining position performs unexpectedly, AC Energy 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 AC Energy will offset losses from the drop in AC Energy's long position.

The idea behind Semirara Mining Corp and AC Energy Philippines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.