Correlation Between Philex Mining and COL Financial

Can any of the company-specific risk be diversified away by investing in both Philex Mining and COL Financial 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 COL Financial 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 COL Financial Group, you can compare the effects of market volatilities on Philex Mining and COL Financial 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 COL Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and COL Financial.

Diversification Opportunities for Philex Mining and COL Financial

0.15

Correlation Coefficient

Philex Mining  COL Financial

Average diversification

The 3 months correlation between Philex and COL is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and COL Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Financial Group 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 COL Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Financial Group has no effect on the direction of Philex Mining i.e., Philex Mining and COL Financial go up and down completely randomly.

Pair Corralation between Philex Mining and COL Financial

Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the COL Financial. In addition to that, Philex Mining is 1.46 times more volatile than COL Financial Group. It trades about -0.05 of its total potential returns per unit of risk. COL Financial Group is currently generating about -0.01 per unit of volatility. If you would invest  152.00  in COL Financial Group on April 25, 2025 and sell it today you would lose (4.00) from holding COL Financial Group or give up 2.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.33%
Values	Daily Returns

Philex Mining Corp  vs.  COL Financial Group

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.

COL Financial Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days COL Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, COL Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Philex Mining and COL Financial

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

The idea behind Philex Mining Corp and COL Financial Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.