Correlation Between LFM Properties and First Philippine
Can any of the company-specific risk be diversified away by investing in both LFM Properties and First Philippine 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 LFM Properties and First Philippine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LFM Properties Corp and First Philippine Holdings, you can compare the effects of market volatilities on LFM Properties and First Philippine 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 LFM Properties with a short position of First Philippine. Check out your portfolio center. Please also check ongoing floating volatility patterns of LFM Properties and First Philippine.
Diversification Opportunities for LFM Properties and First Philippine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LFM and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LFM Properties Corp and First Philippine Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Philippine Holdings and LFM Properties 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 LFM Properties Corp are associated (or correlated) with First Philippine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Philippine Holdings has no effect on the direction of LFM Properties i.e., LFM Properties and First Philippine go up and down completely randomly.
Pair Corralation between LFM Properties and First Philippine
If you would invest (100.00) in LFM Properties Corp on August 31, 2024 and sell it today you would earn a total of 100.00 from holding LFM Properties Corp or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
LFM Properties Corp vs. First Philippine Holdings
Performance |
Timeline |
LFM Properties Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Philippine Holdings |
LFM Properties and First Philippine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LFM Properties and First Philippine
The main advantage of trading using opposite LFM Properties and First Philippine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LFM Properties position performs unexpectedly, First Philippine 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 First Philippine will offset losses from the drop in First Philippine's long position.LFM Properties vs. Security Bank Corp | LFM Properties vs. Pacificonline Systems | LFM Properties vs. Top Frontier Investment | LFM Properties vs. SM Investments Corp |
First Philippine vs. COL Financial Group | First Philippine vs. Crown Asia Chemicals | First Philippine vs. Security Bank Corp | First Philippine vs. Manulife Financial 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |