Correlation Between AyalaLand REIT and COL Financial
Can any of the company-specific risk be diversified away by investing in both AyalaLand REIT and COL Financial 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 AyalaLand REIT and COL Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AyalaLand REIT and COL Financial Group, you can compare the effects of market volatilities on AyalaLand REIT and COL Financial 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 AyalaLand REIT with a short position of COL Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AyalaLand REIT and COL Financial.
Diversification Opportunities for AyalaLand REIT and COL Financial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between AyalaLand and COL is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding AyalaLand REIT and COL Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Financial Group and AyalaLand REIT 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 AyalaLand REIT are associated (or correlated) with COL Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Financial Group has no effect on the direction of AyalaLand REIT i.e., AyalaLand REIT and COL Financial go up and down completely randomly.
Pair Corralation between AyalaLand REIT and COL Financial
Assuming the 90 days trading horizon AyalaLand REIT is expected to generate 0.59 times more return on investment than COL Financial. However, AyalaLand REIT is 1.7 times less risky than COL Financial. It trades about -0.06 of its potential returns per unit of risk. COL Financial Group is currently generating about -0.33 per unit of risk. If you would invest 3,877 in AyalaLand REIT on September 12, 2024 and sell it today you would lose (82.00) from holding AyalaLand REIT or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AyalaLand REIT vs. COL Financial Group
Performance |
| Timeline |
| AyalaLand REIT |
| COL Financial Group |
AyalaLand REIT and COL Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AyalaLand REIT and COL Financial
The main advantage of trading using opposite AyalaLand REIT and COL Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AyalaLand REIT position performs unexpectedly, COL Financial 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 COL Financial will offset losses from the drop in COL Financial's long position.| AyalaLand REIT vs. Top Frontier Investment | AyalaLand REIT vs. Jollibee Foods Corp | AyalaLand REIT vs. Integrated Micro Electronics | AyalaLand REIT vs. National Reinsurance |
| COL Financial vs. Semirara Mining Corp | COL Financial vs. Robinsons Retail Holdings | COL Financial vs. National Reinsurance | COL Financial vs. Lepanto Consolidated Mining |
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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