Correlation Between Jollibee Foods and Balai Ni
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Balai Ni 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 Balai Ni 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 Balai Ni Fruitas, you can compare the effects of market volatilities on Jollibee Foods and Balai Ni 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 Balai Ni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Balai Ni.
Diversification Opportunities for Jollibee Foods and Balai Ni
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jollibee and Balai is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Balai Ni Fruitas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balai Ni Fruitas 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 Balai Ni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balai Ni Fruitas has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Balai Ni go up and down completely randomly.
Pair Corralation between Jollibee Foods and Balai Ni
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to generate 0.54 times more return on investment than Balai Ni. However, Jollibee Foods Corp is 1.84 times less risky than Balai Ni. It trades about 0.03 of its potential returns per unit of risk. Balai Ni Fruitas is currently generating about -0.02 per unit of risk. If you would invest 23,165 in Jollibee Foods Corp on August 30, 2024 and sell it today you would earn a total of 4,015 from holding Jollibee Foods Corp or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.35% |
| Values | Daily Returns |
Jollibee Foods Corp vs. Balai Ni Fruitas
Performance |
| Timeline |
| Jollibee Foods Corp |
| Balai Ni Fruitas |
Jollibee Foods and Balai Ni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and Balai Ni
The main advantage of trading using opposite Jollibee Foods and Balai Ni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Balai Ni 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 Balai Ni will offset losses from the drop in Balai Ni's long position.| Jollibee Foods vs. Atlas Consolidated Mining | Jollibee Foods vs. Top Frontier Investment | Jollibee Foods vs. Converge Information Communications | Jollibee Foods vs. Manila Mining 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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