Correlation Between Philex Mining and Integrated Micro

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

Diversification Opportunities for Philex Mining and Integrated Micro

-0.45

Correlation Coefficient

Philex Mining  Integrated Micro

Very good diversification

The 3 months correlation between Philex and Integrated is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele 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 Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Philex Mining i.e., Philex Mining and Integrated Micro go up and down completely randomly.

Pair Corralation between Philex Mining and Integrated Micro

Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the Integrated Micro. But the stock apears to be less risky and, when comparing its historical volatility, Philex Mining Corp is 1.2 times less risky than Integrated Micro. The stock trades about -0.07 of its potential returns per unit of risk. The Integrated Micro Electronics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  235.00  in Integrated Micro Electronics on April 20, 2025 and sell it today you would lose (15.00) from holding Integrated Micro Electronics or give up 6.38% of portfolio value over 90 days.

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

Philex Mining Corp  vs.  Integrated Micro Electronics

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 unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Integrated Micro Ele

Risk-Adjusted Performance

Very Weak

Over the last 90 days Integrated Micro Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Integrated Micro 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 Integrated Micro

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

The idea behind Philex Mining Corp and Integrated Micro Electronics 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.