Correlation Between Manila Mining and Alliance Global
Can any of the company-specific risk be diversified away by investing in both Manila Mining and Alliance Global 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 Manila Mining and Alliance Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manila Mining Corp and Alliance Global Group, you can compare the effects of market volatilities on Manila Mining and Alliance Global 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 Manila Mining with a short position of Alliance Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Mining and Alliance Global.
Diversification Opportunities for Manila Mining and Alliance Global
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manila and Alliance is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Manila Mining Corp and Alliance Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Global Group and Manila 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 Manila Mining Corp are associated (or correlated) with Alliance Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Global Group has no effect on the direction of Manila Mining i.e., Manila Mining and Alliance Global go up and down completely randomly.
Pair Corralation between Manila Mining and Alliance Global
Assuming the 90 days trading horizon Manila Mining Corp is expected to under-perform the Alliance Global. In addition to that, Manila Mining is 2.08 times more volatile than Alliance Global Group. It trades about -0.15 of its total potential returns per unit of risk. Alliance Global Group is currently generating about -0.09 per unit of volatility. If you would invest 942.00 in Alliance Global Group on September 26, 2024 and sell it today you would lose (72.00) from holding Alliance Global Group or give up 7.64% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 57.14% |
Values | Daily Returns |
Manila Mining Corp vs. Alliance Global Group
Performance |
Timeline |
Manila Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alliance Global Group |
Manila Mining and Alliance Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Manila Mining and Alliance Global
The main advantage of trading using opposite Manila Mining and Alliance Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Mining position performs unexpectedly, Alliance Global 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 Alliance Global will offset losses from the drop in Alliance Global's long position.Manila Mining vs. Nickel Asia Corp | Manila Mining vs. Atok Big Wedge | Manila Mining vs. Philex Mining Corp | Manila Mining vs. Atlas Consolidated Mining |
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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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