Correlation Between Jollibee Foods and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Jollibee Foods and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Dow Jones.
Diversification Opportunities for Jollibee Foods and Dow Jones
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jollibee and Dow is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Dow Jones go up and down completely randomly.
Pair Corralation between Jollibee Foods and Dow Jones
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to under-perform the Dow Jones. In addition to that, Jollibee Foods is 2.18 times more volatile than Dow Jones Industrial. It trades about -0.04 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.37 per unit of volatility. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% 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. Dow Jones Industrial
Performance |
| Timeline |
Jollibee Foods and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jollibee Foods Corp
Pair trading matchups for Jollibee Foods
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jollibee Foods and Dow Jones
The main advantage of trading using opposite Jollibee Foods and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |