Correlation Between Benguet Corp and Unigold

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Can any of the company-specific risk be diversified away by investing in both Benguet Corp and Unigold 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 Benguet Corp and Unigold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benguet Corp B and Unigold, you can compare the effects of market volatilities on Benguet Corp and Unigold 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 Benguet Corp with a short position of Unigold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benguet Corp and Unigold.

Diversification Opportunities for Benguet Corp and Unigold

-0.45
  Correlation Coefficient

Very good diversification

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

Pair Corralation between Benguet Corp and Unigold

Assuming the 90 days horizon Benguet Corp is expected to generate 1.21 times less return on investment than Unigold. In addition to that, Benguet Corp is 1.37 times more volatile than Unigold. It trades about 0.05 of its total potential returns per unit of risk. Unigold is currently generating about 0.09 per unit of volatility. If you would invest  11.00  in Unigold on August 22, 2025 and sell it today you would earn a total of  3.00  from holding Unigold or generate 27.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Benguet Corp B  vs.  Unigold

 Performance 
       Timeline  
Benguet Corp B 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Benguet Corp B are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Benguet Corp reported solid returns over the last few months and may actually be approaching a breakup point.
Unigold 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Unigold are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Unigold reported solid returns over the last few months and may actually be approaching a breakup point.

Benguet Corp and Unigold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Benguet Corp and Unigold

The main advantage of trading using opposite Benguet Corp and Unigold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benguet Corp position performs unexpectedly, Unigold 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 Unigold will offset losses from the drop in Unigold's long position.
The idea behind Benguet Corp B and Unigold 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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