Correlation Between Jollibee Foods and COL Financial
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and COL Financial 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 COL Financial 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 COL Financial Group, you can compare the effects of market volatilities on Jollibee Foods and COL Financial 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 COL Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and COL Financial.
Diversification Opportunities for Jollibee Foods and COL Financial
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jollibee and COL is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and COL Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Financial 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 COL Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Financial Group has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and COL Financial go up and down completely randomly.
Pair Corralation between Jollibee Foods and COL Financial
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to generate 0.89 times more return on investment than COL Financial. However, Jollibee Foods Corp is 1.13 times less risky than COL Financial. It trades about 0.09 of its potential returns per unit of risk. COL Financial Group is currently generating about -0.28 per unit of risk. If you would invest 26,718 in Jollibee Foods Corp on August 28, 2024 and sell it today you would earn a total of 842.00 from holding Jollibee Foods Corp or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jollibee Foods Corp vs. COL Financial Group
Performance |
| Timeline |
| Jollibee Foods Corp |
| COL Financial Group |
Jollibee Foods and COL Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and COL Financial
The main advantage of trading using opposite Jollibee Foods and COL Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, COL Financial 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 COL Financial will offset losses from the drop in COL Financial's long position.| Jollibee Foods vs. Allhome Corp | Jollibee Foods vs. LFM Properties Corp | Jollibee Foods vs. PXP Energy Corp | Jollibee Foods vs. Monde Nissin Corp |
| COL Financial vs. Suntrust Home Developers | COL Financial vs. Asia United Bank | COL Financial vs. Metro Retail Stores | COL Financial vs. BDO Unibank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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