Correlation Between Jollibee Foods and Robinsons Land
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Robinsons Land 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 Robinsons Land 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 Robinsons Land Corp, you can compare the effects of market volatilities on Jollibee Foods and Robinsons Land 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 Robinsons Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Robinsons Land.
Diversification Opportunities for Jollibee Foods and Robinsons Land
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jollibee and Robinsons is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Robinsons Land Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Land 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 Robinsons Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Land Corp has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Robinsons Land go up and down completely randomly.
Pair Corralation between Jollibee Foods and Robinsons Land
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to generate 1.07 times more return on investment than Robinsons Land. However, Jollibee Foods is 1.07 times more volatile than Robinsons Land Corp. It trades about 0.03 of its potential returns per unit of risk. Robinsons Land Corp is currently generating about 0.0 per unit of risk. If you would invest 23,165 in Jollibee Foods Corp on August 30, 2024 and sell it today you would earn a total of 4,015 from holding Jollibee Foods Corp or generate 17.33% 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. Robinsons Land Corp
Performance |
| Timeline |
| Jollibee Foods Corp |
| Robinsons Land Corp |
Jollibee Foods and Robinsons Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and Robinsons Land
The main advantage of trading using opposite Jollibee Foods and Robinsons Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Robinsons Land 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 Robinsons Land will offset losses from the drop in Robinsons Land's long position.| Jollibee Foods vs. Atlas Consolidated Mining | Jollibee Foods vs. Top Frontier Investment | Jollibee Foods vs. Converge Information Communications | Jollibee Foods vs. Manila Mining Corp |
| Robinsons Land vs. Metro Retail Stores | Robinsons Land vs. Robinsons Retail Holdings | Robinsons Land vs. Jollibee Foods Corp | Robinsons Land 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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