Correlation Between Jollibee Foods and Cirtek Holdings
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Cirtek Holdings 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 Cirtek Holdings 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 Cirtek Holdings Philippines, you can compare the effects of market volatilities on Jollibee Foods and Cirtek Holdings 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 Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Cirtek Holdings.
Diversification Opportunities for Jollibee Foods and Cirtek Holdings
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jollibee and Cirtek is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Cirtek Holdings Philippines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cirtek Holdings Phil 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 Cirtek Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cirtek Holdings Phil has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Cirtek Holdings go up and down completely randomly.
Pair Corralation between Jollibee Foods and Cirtek Holdings
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to under-perform the Cirtek Holdings. In addition to that, Jollibee Foods is 3.95 times more volatile than Cirtek Holdings Philippines. It trades about -0.04 of its total potential returns per unit of risk. Cirtek Holdings Philippines is currently generating about -0.1 per unit of volatility. If you would invest 4,940 in Cirtek Holdings Philippines on September 1, 2024 and sell it today you would lose (40.00) from holding Cirtek Holdings Philippines or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Jollibee Foods Corp vs. Cirtek Holdings Philippines
Performance |
| Timeline |
| Jollibee Foods Corp |
| Cirtek Holdings Phil |
Jollibee Foods and Cirtek Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jollibee Foods and Cirtek Holdings
The main advantage of trading using opposite Jollibee Foods and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Cirtek Holdings 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 Cirtek Holdings will offset losses from the drop in Cirtek Holdings' 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 |
| Cirtek Holdings vs. Integrated Micro Electronics | Cirtek Holdings vs. GT Capital Holdings | Cirtek Holdings vs. Allhome Corp | Cirtek Holdings vs. Jollibee Foods 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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