Correlation Between Jollibee Foods and Alliance Global
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Alliance Global 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 Alliance Global 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 Alliance Global Group, you can compare the effects of market volatilities on Jollibee Foods and Alliance Global 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 Alliance Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Alliance Global.
Diversification Opportunities for Jollibee Foods and Alliance Global
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jollibee and Alliance is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Alliance Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Global Group 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 Alliance Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Global Group has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Alliance Global go up and down completely randomly.
Pair Corralation between Jollibee Foods and Alliance Global
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to generate 1.68 times more return on investment than Alliance Global. However, Jollibee Foods is 1.68 times more volatile than Alliance Global Group. It trades about -0.04 of its potential returns per unit of risk. Alliance Global Group is currently generating about -0.17 per unit of risk. If you would invest 26,341 in Jollibee Foods Corp on September 1, 2024 and sell it today you would lose (541.00) from holding Jollibee Foods Corp or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jollibee Foods Corp vs. Alliance Global Group
Performance |
| Timeline |
| Jollibee Foods Corp |
| Alliance Global Group |
Jollibee Foods and Alliance Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and Alliance Global
The main advantage of trading using opposite Jollibee Foods and Alliance Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Alliance Global 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 Alliance Global will offset losses from the drop in Alliance Global's long position.| Jollibee Foods vs. Metropolitan Bank Trust | Jollibee Foods vs. Philex Mining Corp | Jollibee Foods vs. Top Frontier Investment | Jollibee Foods vs. BDO Unibank |
| Alliance Global vs. GT Capital Holdings | Alliance Global vs. Allhome Corp | Alliance Global vs. Jollibee Foods Corp | Alliance Global vs. LFM Properties 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |