Correlation Between Philex Mining and Metro Retail

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

Diversification Opportunities for Philex Mining and Metro Retail

-0.18

Correlation Coefficient

Philex Mining  Metro Retail

Good diversification

The 3 months correlation between Philex and Metro is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Metro Retail Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Retail Stores 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 Metro Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Retail Stores has no effect on the direction of Philex Mining i.e., Philex Mining and Metro Retail go up and down completely randomly.

Pair Corralation between Philex Mining and Metro Retail

Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the Metro Retail. In addition to that, Philex Mining is 1.94 times more volatile than Metro Retail Stores. It trades about -0.07 of its total potential returns per unit of risk. Metro Retail Stores is currently generating about -0.03 per unit of volatility. If you would invest  122.00  in Metro Retail Stores on April 20, 2025 and sell it today you would lose (5.00) from holding Metro Retail Stores or give up 4.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Philex Mining Corp  vs.  Metro Retail Stores

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.

Metro Retail Stores

Risk-Adjusted Performance

Very Weak

Over the last 90 days Metro Retail Stores has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Metro Retail is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Philex Mining and Metro Retail

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

The idea behind Philex Mining Corp and Metro Retail Stores 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.