Correlation Between Mako Mining and PHLT

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

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

Diversification Opportunities for Mako Mining and PHLT

0.4

Correlation Coefficient

Mako Mining  PHLT

Very weak diversification

The 3 months correlation between Mako and PHLT is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and PHLT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHLT and Mako 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 Mako Mining Corp are associated (or correlated) with PHLT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHLT has no effect on the direction of Mako Mining i.e., Mako Mining and PHLT go up and down completely randomly.

Pair Corralation between Mako Mining and PHLT

Assuming the 90 days horizon Mako Mining Corp is expected to under-perform the PHLT. But the otc stock apears to be less risky and, when comparing its historical volatility, Mako Mining Corp is 1.16 times less risky than PHLT. The otc stock trades about -0.01 of its potential returns per unit of risk. The PHLT is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  315.00  in PHLT on October 9, 2024 and sell it today you would lose (25.00) from holding PHLT or give up 7.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Mako Mining Corp  vs.  PHLT

Mako Mining Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mako Mining Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Mako Mining may actually be approaching a critical reversion point that can send shares even higher in February 2025.

PHLT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PHLT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Mako Mining and PHLT

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

The idea behind Mako Mining Corp and PHLT 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.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.