Correlation Between Jollibee Foods and Xiabuxiabu Catering
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Xiabuxiabu Catering 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 Jollibee Foods and Xiabuxiabu Catering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jollibee Foods Corp and Xiabuxiabu Catering Management, you can compare the effects of market volatilities on Jollibee Foods and Xiabuxiabu Catering 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 Jollibee Foods with a short position of Xiabuxiabu Catering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Xiabuxiabu Catering.
Diversification Opportunities for Jollibee Foods and Xiabuxiabu Catering
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jollibee and Xiabuxiabu is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Xiabuxiabu Catering Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiabuxiabu Catering and Jollibee Foods 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 Jollibee Foods Corp are associated (or correlated) with Xiabuxiabu Catering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiabuxiabu Catering has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Xiabuxiabu Catering go up and down completely randomly.
Pair Corralation between Jollibee Foods and Xiabuxiabu Catering
If you would invest 1,745 in Jollibee Foods Corp on September 12, 2024 and sell it today you would earn a total of 229.00 from holding Jollibee Foods Corp or generate 13.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jollibee Foods Corp vs. Xiabuxiabu Catering Management
Performance |
| Timeline |
| Jollibee Foods Corp |
| Xiabuxiabu Catering |
Jollibee Foods and Xiabuxiabu Catering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and Xiabuxiabu Catering
The main advantage of trading using opposite Jollibee Foods and Xiabuxiabu Catering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Xiabuxiabu Catering 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 Xiabuxiabu Catering will offset losses from the drop in Xiabuxiabu Catering's long position.| Jollibee Foods vs. Nathans Famous | Jollibee Foods vs. Good Times Restaurants | Jollibee Foods vs. McDonalds Holdings | Jollibee Foods vs. Compass Group PLC |
| Xiabuxiabu Catering vs. Jollibee Foods Corp | Xiabuxiabu Catering vs. Nathans Famous | Xiabuxiabu Catering vs. Good Times Restaurants | Xiabuxiabu Catering vs. Compass Group PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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