Correlation Between Filinvest REIT and AyalaLand REIT
Can any of the company-specific risk be diversified away by investing in both Filinvest REIT and AyalaLand REIT 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 Filinvest REIT and AyalaLand REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filinvest REIT Corp and AyalaLand REIT, you can compare the effects of market volatilities on Filinvest REIT and AyalaLand REIT 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 Filinvest REIT with a short position of AyalaLand REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filinvest REIT and AyalaLand REIT.
Diversification Opportunities for Filinvest REIT and AyalaLand REIT
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Filinvest and AyalaLand is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Filinvest REIT Corp and AyalaLand REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AyalaLand REIT and Filinvest 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 Filinvest REIT Corp are associated (or correlated) with AyalaLand REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AyalaLand REIT has no effect on the direction of Filinvest REIT i.e., Filinvest REIT and AyalaLand REIT go up and down completely randomly.
Pair Corralation between Filinvest REIT and AyalaLand REIT
Assuming the 90 days trading horizon Filinvest REIT Corp is expected to under-perform the AyalaLand REIT. But the stock apears to be less risky and, when comparing its historical volatility, Filinvest REIT Corp is 1.39 times less risky than AyalaLand REIT. The stock trades about -0.09 of its potential returns per unit of risk. The AyalaLand REIT is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,783 in AyalaLand REIT on September 5, 2024 and sell it today you would earn a total of 207.00 from holding AyalaLand REIT or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filinvest REIT Corp vs. AyalaLand REIT
Performance |
| Timeline |
| Filinvest REIT Corp |
| AyalaLand REIT |
Filinvest REIT and AyalaLand REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filinvest REIT and AyalaLand REIT
The main advantage of trading using opposite Filinvest REIT and AyalaLand REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filinvest REIT position performs unexpectedly, AyalaLand REIT 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 AyalaLand REIT will offset losses from the drop in AyalaLand REIT's long position.| Filinvest REIT vs. Century Pacific Food | Filinvest REIT vs. Filinvest Land | Filinvest REIT vs. Puregold Price Club |
| AyalaLand REIT vs. Filinvest REIT Corp | AyalaLand REIT vs. Century Pacific Food | AyalaLand REIT vs. Filinvest Land | AyalaLand REIT vs. Puregold Price Club |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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