Correlation Between Jollibee Foods and Manila Mining
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Manila Mining 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 Manila Mining 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 Manila Mining Corp, you can compare the effects of market volatilities on Jollibee Foods and Manila Mining 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 Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Manila Mining.
Diversification Opportunities for Jollibee Foods and Manila Mining
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jollibee and Manila is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Manila Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Mining Corp 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 Manila Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Mining Corp has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Manila Mining go up and down completely randomly.
Pair Corralation between Jollibee Foods and Manila Mining
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to generate 0.52 times more return on investment than Manila Mining. However, Jollibee Foods Corp is 1.93 times less risky than Manila Mining. It trades about -0.06 of its potential returns per unit of risk. Manila Mining Corp is currently generating about -0.07 per unit of risk. If you would invest 26,718 in Jollibee Foods Corp on October 26, 2024 and sell it today you would lose (1,858) from holding Jollibee Foods Corp or give up 6.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 46.55% |
| Values | Daily Returns |
Jollibee Foods Corp vs. Manila Mining Corp
Performance |
| Timeline |
| Jollibee Foods Corp |
| Manila Mining Corp |
Jollibee Foods and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and Manila Mining
The main advantage of trading using opposite Jollibee Foods and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Manila Mining 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 Manila Mining will offset losses from the drop in Manila Mining's long position.| Jollibee Foods vs. SM Investments Corp | Jollibee Foods vs. STI Education Systems | Jollibee Foods vs. Lepanto Consolidated Mining | Jollibee Foods vs. Top Frontier Investment |
| Manila Mining vs. Premiere Entertainment | Manila Mining vs. Jollibee Foods Corp | Manila Mining vs. Semirara Mining Corp | Manila Mining vs. Converge Information Communications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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