Correlation Between Cebu Landmasters and COL Financial
Can any of the company-specific risk be diversified away by investing in both Cebu Landmasters 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 Cebu Landmasters and COL Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cebu Landmasters and COL Financial Group, you can compare the effects of market volatilities on Cebu Landmasters 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 Cebu Landmasters with a short position of COL Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Landmasters and COL Financial.
Diversification Opportunities for Cebu Landmasters and COL Financial
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cebu and COL is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Landmasters 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 Cebu Landmasters 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 Cebu Landmasters 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 Cebu Landmasters i.e., Cebu Landmasters and COL Financial go up and down completely randomly.
Pair Corralation between Cebu Landmasters and COL Financial
Assuming the 90 days trading horizon Cebu Landmasters is expected to generate 0.63 times more return on investment than COL Financial. However, Cebu Landmasters is 1.58 times less risky than COL Financial. It trades about -0.05 of its potential returns per unit of risk. COL Financial Group is currently generating about -0.29 per unit of risk. If you would invest 271.00 in Cebu Landmasters on September 14, 2024 and sell it today you would lose (6.00) from holding Cebu Landmasters or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cebu Landmasters vs. COL Financial Group
Performance |
| Timeline |
| Cebu Landmasters |
| COL Financial Group |
Cebu Landmasters and COL Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Landmasters and COL Financial
The main advantage of trading using opposite Cebu Landmasters and COL Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Landmasters 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.| Cebu Landmasters vs. SM Investments Corp | Cebu Landmasters vs. Alliance Select Foods | Cebu Landmasters vs. Globe Telecom | Cebu Landmasters vs. House of Investments |
| COL Financial vs. VistaREIT | COL Financial vs. Bright Kindle Resources | COL Financial vs. GT Capital Holdings | COL Financial vs. Allhome Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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