Correlation Between AyalaLand REIT and Philippine Savings
Can any of the company-specific risk be diversified away by investing in both AyalaLand REIT and Philippine Savings 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 Philippine Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AyalaLand REIT and Philippine Savings Bank, you can compare the effects of market volatilities on AyalaLand REIT and Philippine Savings 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 Philippine Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AyalaLand REIT and Philippine Savings.
Diversification Opportunities for AyalaLand REIT and Philippine Savings
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AyalaLand and Philippine is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding AyalaLand REIT and Philippine Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philippine Savings Bank 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 Philippine Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philippine Savings Bank has no effect on the direction of AyalaLand REIT i.e., AyalaLand REIT and Philippine Savings go up and down completely randomly.
Pair Corralation between AyalaLand REIT and Philippine Savings
Assuming the 90 days trading horizon AyalaLand REIT is expected to generate 1.5 times less return on investment than Philippine Savings. But when comparing it to its historical volatility, AyalaLand REIT is 1.48 times less risky than Philippine Savings. It trades about 0.04 of its potential returns per unit of risk. Philippine Savings Bank is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,925 in Philippine Savings Bank on August 31, 2024 and sell it today you would earn a total of 75.00 from holding Philippine Savings Bank or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AyalaLand REIT vs. Philippine Savings Bank
Performance |
| Timeline |
| AyalaLand REIT |
| Philippine Savings Bank |
AyalaLand REIT and Philippine Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AyalaLand REIT and Philippine Savings
The main advantage of trading using opposite AyalaLand REIT and Philippine Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AyalaLand REIT position performs unexpectedly, Philippine Savings 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 Philippine Savings will offset losses from the drop in Philippine Savings' long position.| AyalaLand REIT vs. Philippine Savings Bank | AyalaLand REIT vs. Lepanto Consolidated Mining | AyalaLand REIT vs. Crown Asia Chemicals | AyalaLand REIT vs. Union Bank of |
| Philippine Savings vs. Metropolitan Bank Trust | Philippine Savings vs. Philippine National Bank | Philippine Savings vs. Asia United Bank | Philippine Savings vs. East West Banking |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |