Correlation Between Intuitive Machines and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both Intuitive Machines and Jollibee Foods 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 Intuitive Machines and Jollibee Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Machines and Jollibee Foods, you can compare the effects of market volatilities on Intuitive Machines and Jollibee Foods 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 Intuitive Machines with a short position of Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Machines and Jollibee Foods.
Diversification Opportunities for Intuitive Machines and Jollibee Foods
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intuitive and Jollibee is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Jollibee Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods and Intuitive Machines 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 Intuitive Machines are associated (or correlated) with Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods has no effect on the direction of Intuitive Machines i.e., Intuitive Machines and Jollibee Foods go up and down completely randomly.
Pair Corralation between Intuitive Machines and Jollibee Foods
Given the investment horizon of 90 days Intuitive Machines is expected to generate 2.81 times more return on investment than Jollibee Foods. However, Intuitive Machines is 2.81 times more volatile than Jollibee Foods. It trades about 0.17 of its potential returns per unit of risk. Jollibee Foods is currently generating about 0.0 per unit of risk. If you would invest 782.00 in Intuitive Machines on September 13, 2024 and sell it today you would earn a total of 444.50 from holding Intuitive Machines or generate 56.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Intuitive Machines vs. Jollibee Foods
Performance |
| Timeline |
| Intuitive Machines |
| Jollibee Foods |
Intuitive Machines and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Machines and Jollibee Foods
The main advantage of trading using opposite Intuitive Machines and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines position performs unexpectedly, Jollibee Foods 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| Intuitive Machines vs. Novocure | Intuitive Machines vs. HubSpot | Intuitive Machines vs. DigitalOcean Holdings | Intuitive Machines vs. Appian Corp |
| Jollibee Foods vs. Dominos Pizza Group | Jollibee Foods vs. Compass Group PLC | Jollibee Foods vs. The Cheesecake Factory | Jollibee Foods vs. Rave Restaurant Group |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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