Correlation Between Philippine Savings and Balai Ni
Can any of the company-specific risk be diversified away by investing in both Philippine Savings and Balai Ni 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 Philippine Savings and Balai Ni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philippine Savings Bank and Balai Ni Fruitas, you can compare the effects of market volatilities on Philippine Savings and Balai Ni 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 Philippine Savings with a short position of Balai Ni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philippine Savings and Balai Ni.
Diversification Opportunities for Philippine Savings and Balai Ni
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Philippine and Balai is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Philippine Savings Bank and Balai Ni Fruitas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balai Ni Fruitas and Philippine Savings 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 Philippine Savings Bank are associated (or correlated) with Balai Ni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balai Ni Fruitas has no effect on the direction of Philippine Savings i.e., Philippine Savings and Balai Ni go up and down completely randomly.
Pair Corralation between Philippine Savings and Balai Ni
Assuming the 90 days trading horizon Philippine Savings Bank is expected to generate 0.48 times more return on investment than Balai Ni. However, Philippine Savings Bank is 2.08 times less risky than Balai Ni. It trades about -0.03 of its potential returns per unit of risk. Balai Ni Fruitas is currently generating about -0.02 per unit of risk. If you would invest 6,100 in Philippine Savings Bank on September 1, 2024 and sell it today you would lose (100.00) from holding Philippine Savings Bank or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Philippine Savings Bank vs. Balai Ni Fruitas
Performance |
| Timeline |
| Philippine Savings Bank |
| Balai Ni Fruitas |
Philippine Savings and Balai Ni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philippine Savings and Balai Ni
The main advantage of trading using opposite Philippine Savings and Balai Ni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philippine Savings position performs unexpectedly, Balai Ni 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 Balai Ni will offset losses from the drop in Balai Ni's long position.| Philippine Savings vs. Concepcion Industrial Corp | Philippine Savings vs. Globe Telecom | Philippine Savings vs. Top Frontier Investment | Philippine Savings vs. Lepanto Consolidated Mining |
| Balai Ni vs. Manila Mining Corp | Balai Ni vs. Philippine Savings Bank | Balai Ni vs. Jollibee Foods Corp | Balai Ni vs. Metro Retail Stores |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |