Correlation Between BDO Unibank and Bloomberry Resorts
Can any of the company-specific risk be diversified away by investing in both BDO Unibank and Bloomberry Resorts 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 BDO Unibank and Bloomberry Resorts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BDO Unibank and Bloomberry Resorts Corp, you can compare the effects of market volatilities on BDO Unibank and Bloomberry Resorts 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 BDO Unibank with a short position of Bloomberry Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of BDO Unibank and Bloomberry Resorts.
Diversification Opportunities for BDO Unibank and Bloomberry Resorts
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BDO and Bloomberry is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding BDO Unibank and Bloomberry Resorts Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomberry Resorts Corp and BDO Unibank 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 BDO Unibank are associated (or correlated) with Bloomberry Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomberry Resorts Corp has no effect on the direction of BDO Unibank i.e., BDO Unibank and Bloomberry Resorts go up and down completely randomly.
Pair Corralation between BDO Unibank and Bloomberry Resorts
Assuming the 90 days trading horizon BDO Unibank is expected to generate 0.91 times more return on investment than Bloomberry Resorts. However, BDO Unibank is 1.1 times less risky than Bloomberry Resorts. It trades about 0.06 of its potential returns per unit of risk. Bloomberry Resorts Corp is currently generating about -0.21 per unit of risk. If you would invest 13,614 in BDO Unibank on September 1, 2024 and sell it today you would earn a total of 1,836 from holding BDO Unibank or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
BDO Unibank vs. Bloomberry Resorts Corp
Performance |
| Timeline |
| BDO Unibank |
| Bloomberry Resorts Corp |
BDO Unibank and Bloomberry Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BDO Unibank and Bloomberry Resorts
The main advantage of trading using opposite BDO Unibank and Bloomberry Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BDO Unibank position performs unexpectedly, Bloomberry Resorts 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 Bloomberry Resorts will offset losses from the drop in Bloomberry Resorts' long position.| BDO Unibank vs. Sun Life Financial | BDO Unibank vs. Rizal Commercial Banking | BDO Unibank vs. Cebu Air Preferred | BDO Unibank vs. Manila Mining Corp |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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