Correlation Between Philex Mining and Axelum Resources

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

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

Diversification Opportunities for Philex Mining and Axelum Resources

0.05

Correlation Coefficient

Philex Mining  Axelum Resources

Significant diversification

The 3 months correlation between Philex and Axelum is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Axelum Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axelum Resources Corp and Philex 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 Philex Mining Corp are associated (or correlated) with Axelum Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axelum Resources Corp has no effect on the direction of Philex Mining i.e., Philex Mining and Axelum Resources go up and down completely randomly.

Pair Corralation between Philex Mining and Axelum Resources

Assuming the 90 days trading horizon Philex Mining Corp is expected to generate 1.44 times more return on investment than Axelum Resources. However, Philex Mining is 1.44 times more volatile than Axelum Resources Corp. It trades about -0.06 of its potential returns per unit of risk. Axelum Resources Corp is currently generating about -0.1 per unit of risk. If you would invest  664.00  in Philex Mining Corp on April 23, 2025 and sell it today you would lose (85.00) from holding Philex Mining Corp or give up 12.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.67%
Values	Daily Returns

Philex Mining Corp  vs.  Axelum Resources Corp

Philex Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Philex Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Axelum Resources Corp

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Philex Mining and Axelum Resources

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

The idea behind Philex Mining Corp and Axelum Resources Corp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.