Correlation Between Academy Sports and Philex Mining

Can any of the company-specific risk be diversified away by investing in both Academy Sports and Philex Mining 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 Academy Sports and Philex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Academy Sports Outdoors and Philex Mining Corp, you can compare the effects of market volatilities on Academy Sports and Philex Mining 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 Academy Sports with a short position of Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Philex Mining.

Diversification Opportunities for Academy Sports and Philex Mining

-0.6

Correlation Coefficient

Academy Sports  Philex Mining

Excellent diversification

The 3 months correlation between Academy and Philex is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Philex Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philex Mining Corp and Academy Sports 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 Academy Sports Outdoors are associated (or correlated) with Philex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philex Mining Corp has no effect on the direction of Academy Sports i.e., Academy Sports and Philex Mining go up and down completely randomly.

Pair Corralation between Academy Sports and Philex Mining

Considering the 90-day investment horizon Academy Sports Outdoors is expected to generate 1.16 times more return on investment than Philex Mining. However, Academy Sports is 1.16 times more volatile than Philex Mining Corp. It trades about 0.15 of its potential returns per unit of risk. Philex Mining Corp is currently generating about -0.08 per unit of risk. If you would invest  3,757  in Academy Sports Outdoors on May 6, 2025 and sell it today you would earn a total of  1,170  from holding Academy Sports Outdoors or generate 31.14% return on investment over 90 days.

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

Academy Sports Outdoors  vs.  Philex Mining Corp

Academy Sports Outdoors

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Academy Sports Outdoors are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Academy Sports displayed solid returns over the last few months and may actually be approaching a breakup point.

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

Pair Trading with Academy Sports and Philex Mining

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

The idea behind Academy Sports Outdoors and Philex Mining Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.