Correlation Between Sokoman Minerals and Benguet Corp
Can any of the company-specific risk be diversified away by investing in both Sokoman Minerals and Benguet Corp 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 Sokoman Minerals and Benguet Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sokoman Minerals Corp and Benguet Corp B, you can compare the effects of market volatilities on Sokoman Minerals and Benguet Corp 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 Sokoman Minerals with a short position of Benguet Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sokoman Minerals and Benguet Corp.
Diversification Opportunities for Sokoman Minerals and Benguet Corp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sokoman and Benguet is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sokoman Minerals Corp and Benguet Corp B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benguet Corp B and Sokoman Minerals 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 Sokoman Minerals Corp are associated (or correlated) with Benguet Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benguet Corp B has no effect on the direction of Sokoman Minerals i.e., Sokoman Minerals and Benguet Corp go up and down completely randomly.
Pair Corralation between Sokoman Minerals and Benguet Corp
Assuming the 90 days horizon Sokoman Minerals Corp is expected to generate 1.36 times more return on investment than Benguet Corp. However, Sokoman Minerals is 1.36 times more volatile than Benguet Corp B. It trades about 0.24 of its potential returns per unit of risk. Benguet Corp B is currently generating about 0.04 per unit of risk. If you would invest 1.97 in Sokoman Minerals Corp on August 29, 2025 and sell it today you would earn a total of 10.03 from holding Sokoman Minerals Corp or generate 509.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Sokoman Minerals Corp vs. Benguet Corp B
Performance |
| Timeline |
| Sokoman Minerals Corp |
| Benguet Corp B |
Sokoman Minerals and Benguet Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sokoman Minerals and Benguet Corp
The main advantage of trading using opposite Sokoman Minerals and Benguet Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sokoman Minerals position performs unexpectedly, Benguet Corp 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 Benguet Corp will offset losses from the drop in Benguet Corp's long position.| Sokoman Minerals vs. EVO Transportation Energy | Sokoman Minerals vs. Guangzhou Automobile Group | Sokoman Minerals vs. Porsche Automobile Holding | Sokoman Minerals vs. SIGNA Sports United |
| Benguet Corp vs. Collins Foods Limited | Benguet Corp vs. CITIC Telecom International | Benguet Corp vs. Tyson Foods | Benguet Corp vs. Hutchison Telecommunications Hong |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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