Correlation Between Bank of the Philippine Is and Bank Of The
Can any of the company-specific risk be diversified away by investing in both Bank of the Philippine Is and Bank Of The 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 Bank of the Philippine Is and Bank Of The into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of the and Bank, you can compare the effects of market volatilities on Bank of the Philippine Is and Bank Of The 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 Bank of the Philippine Is with a short position of Bank Of The. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of the Philippine Is and Bank Of The.
Diversification Opportunities for Bank of the Philippine Is and Bank Of The
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Bank is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bank of the and Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Of The and Bank of the Philippine Is 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 Bank of the are associated (or correlated) with Bank Of The. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Of The has no effect on the direction of Bank of the Philippine Is i.e., Bank of the Philippine Is and Bank Of The go up and down completely randomly.
Pair Corralation between Bank of the Philippine Is and Bank Of The
If you would invest 189.00 in Bank on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Bank of the vs. Bank
Performance |
| Timeline |
| Bank of the Philippine Is |
| Bank Of The |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of the Philippine Is and Bank Of The Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of the Philippine Is and Bank Of The
The main advantage of trading using opposite Bank of the Philippine Is and Bank Of The positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of the Philippine Is position performs unexpectedly, Bank Of The 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 Bank Of The will offset losses from the drop in Bank Of The's long position.| Bank of the Philippine Is vs. BOC Hong Kong | Bank of the Philippine Is vs. China Merchants Bank | Bank of the Philippine Is vs. BDO Unibank ADR | Bank of the Philippine Is vs. United Security Bancshares |
| Bank Of The vs. SNDL Inc | Bank Of The vs. BOS Better Online | Bank Of The vs. Fomento Economico Mexicano | Bank Of The vs. Global E Online |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |