Correlation Between AgriNurture and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both AgriNurture and Jollibee Foods 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 AgriNurture and Jollibee Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AgriNurture and Jollibee Foods Corp, you can compare the effects of market volatilities on AgriNurture and Jollibee Foods 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 AgriNurture with a short position of Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AgriNurture and Jollibee Foods.
Diversification Opportunities for AgriNurture and Jollibee Foods
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AgriNurture and Jollibee is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding AgriNurture and Jollibee Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods Corp and AgriNurture 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 AgriNurture are associated (or correlated) with Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods Corp has no effect on the direction of AgriNurture i.e., AgriNurture and Jollibee Foods go up and down completely randomly.
Pair Corralation between AgriNurture and Jollibee Foods
Assuming the 90 days trading horizon AgriNurture is expected to generate 1.63 times more return on investment than Jollibee Foods. However, AgriNurture is 1.63 times more volatile than Jollibee Foods Corp. It trades about -0.02 of its potential returns per unit of risk. Jollibee Foods Corp is currently generating about -0.09 per unit of risk. If you would invest 50.00 in AgriNurture on October 20, 2024 and sell it today you would lose (1.00) from holding AgriNurture or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AgriNurture vs. Jollibee Foods Corp
Performance |
| Timeline |
| AgriNurture |
| Jollibee Foods Corp |
AgriNurture and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AgriNurture and Jollibee Foods
The main advantage of trading using opposite AgriNurture and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgriNurture position performs unexpectedly, Jollibee Foods 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| AgriNurture vs. Atlas Consolidated Mining | AgriNurture vs. Top Frontier Investment | AgriNurture vs. Manila Mining Corp | AgriNurture vs. Integrated Micro Electronics |
| Jollibee Foods vs. Cebu Air Preferred | Jollibee Foods vs. Manila Mining Corp | Jollibee Foods vs. Semirara Mining Corp | Jollibee Foods vs. Security Bank Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |