Correlation Between Bank of the and Robinsons Retail
Can any of the company-specific risk be diversified away by investing in both Bank of the and Robinsons Retail 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 and Robinsons Retail 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 Robinsons Retail Holdings, you can compare the effects of market volatilities on Bank of the and Robinsons Retail 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 with a short position of Robinsons Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of the and Robinsons Retail.
Diversification Opportunities for Bank of the and Robinsons Retail
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Robinsons is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bank of the and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail Holdings and Bank of the 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 Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Bank of the i.e., Bank of the and Robinsons Retail go up and down completely randomly.
Pair Corralation between Bank of the and Robinsons Retail
Assuming the 90 days trading horizon Bank of the is expected to generate 1.36 times less return on investment than Robinsons Retail. In addition to that, Bank of the is 1.92 times more volatile than Robinsons Retail Holdings. It trades about 0.1 of its total potential returns per unit of risk. Robinsons Retail Holdings is currently generating about 0.25 per unit of volatility. If you would invest 3,480 in Robinsons Retail Holdings on November 22, 2024 and sell it today you would earn a total of 220.00 from holding Robinsons Retail Holdings or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of the vs. Robinsons Retail Holdings
Performance |
| Timeline |
| Bank of the |
| Robinsons Retail Holdings |
Bank of the and Robinsons Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of the and Robinsons Retail
The main advantage of trading using opposite Bank of the and Robinsons Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of the position performs unexpectedly, Robinsons Retail 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 Robinsons Retail will offset losses from the drop in Robinsons Retail's long position.| Bank of the vs. Jollibee Foods Corp | Bank of the vs. Atlas Consolidated Mining | Bank of the vs. Metropolitan Bank Trust | Bank of the vs. BDO Unibank |
| Robinsons Retail vs. Philex Mining Corp | Robinsons Retail vs. Atlas Consolidated Mining | Robinsons Retail vs. Suntrust Home Developers | Robinsons Retail vs. Asia United Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |