Correlation Between Jollibee Foods and Easycall Communications
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Easycall Communications 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 Easycall Communications 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 Easycall Communications Philippines, you can compare the effects of market volatilities on Jollibee Foods and Easycall Communications 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 Easycall Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Easycall Communications.
Diversification Opportunities for Jollibee Foods and Easycall Communications
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jollibee and Easycall is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Easycall Communications Philip in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easycall Communications 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 Easycall Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easycall Communications has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Easycall Communications go up and down completely randomly.
Pair Corralation between Jollibee Foods and Easycall Communications
Assuming the 90 days trading horizon Jollibee Foods is expected to generate 11.82 times less return on investment than Easycall Communications. But when comparing it to its historical volatility, Jollibee Foods Corp is 6.73 times less risky than Easycall Communications. It trades about 0.03 of its potential returns per unit of risk. Easycall Communications Philippines is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Easycall Communications Philippines on December 4, 2024 and sell it today you would lose (91.00) from holding Easycall Communications Philippines or give up 26.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 39.58% |
| Values | Daily Returns |
Jollibee Foods Corp vs. Easycall Communications Philip
Performance |
| Timeline |
| Jollibee Foods Corp |
| Easycall Communications |
Risk-Adjusted Performance
Good
Weak | Strong |
Jollibee Foods and Easycall Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and Easycall Communications
The main advantage of trading using opposite Jollibee Foods and Easycall Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Easycall Communications 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 Easycall Communications will offset losses from the drop in Easycall Communications' long position.| Jollibee Foods vs. Cebu Air Preferred | Jollibee Foods vs. Transpacific Broadband Group | Jollibee Foods vs. COL Financial Group | Jollibee Foods vs. Philex 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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