Correlation Between Jollibee Foods and International Container
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and International Container 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 International Container 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 International Container Terminal, you can compare the effects of market volatilities on Jollibee Foods and International Container 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 International Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and International Container.
Diversification Opportunities for Jollibee Foods and International Container
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jollibee and International is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and International Container Termin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Container 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 International Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Container has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and International Container go up and down completely randomly.
Pair Corralation between Jollibee Foods and International Container
Assuming the 90 days trading horizon Jollibee Foods is expected to generate 3.79 times less return on investment than International Container. But when comparing it to its historical volatility, Jollibee Foods Corp is 1.23 times less risky than International Container. It trades about 0.03 of its potential returns per unit of risk. International Container Terminal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 19,227 in International Container Terminal on September 4, 2024 and sell it today you would earn a total of 19,773 from holding International Container Terminal or generate 102.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jollibee Foods Corp vs. International Container Termin
Performance |
| Timeline |
| Jollibee Foods Corp |
| International Container |
Jollibee Foods and International Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and International Container
The main advantage of trading using opposite Jollibee Foods and International Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, International Container 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 International Container will offset losses from the drop in International Container's long position.| Jollibee Foods vs. Crown Asia Chemicals | Jollibee Foods vs. Semirara Mining Corp | Jollibee Foods vs. Atlas Consolidated Mining | Jollibee Foods vs. Philex Mining Corp |
| International Container vs. Robinsons Retail Holdings | International Container vs. Philex Mining Corp | International Container vs. SM Investments Corp | International Container 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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