Correlation Between Filinvest Land and Union Bank
Can any of the company-specific risk be diversified away by investing in both Filinvest Land and Union Bank 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 Land and Union Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filinvest Land and Union Bank of, you can compare the effects of market volatilities on Filinvest Land and Union Bank 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 Land with a short position of Union Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filinvest Land and Union Bank.
Diversification Opportunities for Filinvest Land and Union Bank
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Filinvest and Union is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Filinvest Land and Union Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Bank and Filinvest Land 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 Land are associated (or correlated) with Union Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Bank has no effect on the direction of Filinvest Land i.e., Filinvest Land and Union Bank go up and down completely randomly.
Pair Corralation between Filinvest Land and Union Bank
Assuming the 90 days trading horizon Filinvest Land is expected to under-perform the Union Bank. In addition to that, Filinvest Land is 1.39 times more volatile than Union Bank of. It trades about -0.3 of its total potential returns per unit of risk. Union Bank of is currently generating about -0.19 per unit of volatility. If you would invest 3,745 in Union Bank of on September 12, 2024 and sell it today you would lose (195.00) from holding Union Bank of or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filinvest Land vs. Union Bank of
Performance |
| Timeline |
| Filinvest Land |
| Union Bank |
Filinvest Land and Union Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filinvest Land and Union Bank
The main advantage of trading using opposite Filinvest Land and Union Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filinvest Land position performs unexpectedly, Union Bank 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 Union Bank will offset losses from the drop in Union Bank's long position.| Filinvest Land vs. Ayala Land | Filinvest Land vs. Robinsons Land Corp | Filinvest Land vs. Filinvest Development Coproration | Filinvest Land vs. DoubleDragon Properties Corp |
| Union Bank vs. BDO Unibank | Union Bank vs. Metropolitan Bank Trust | Union Bank vs. Security Bank Corp | Union Bank vs. Philippine National 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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