Correlation Between Philippine Savings and Keepers Holdings
Can any of the company-specific risk be diversified away by investing in both Philippine Savings and Keepers 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 Philippine Savings and Keepers Holdings 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 Keepers Holdings, you can compare the effects of market volatilities on Philippine Savings and Keepers 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 Philippine Savings with a short position of Keepers Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philippine Savings and Keepers Holdings.
Diversification Opportunities for Philippine Savings and Keepers Holdings
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Philippine and Keepers is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Philippine Savings Bank and Keepers Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keepers Holdings 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 Keepers Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keepers Holdings has no effect on the direction of Philippine Savings i.e., Philippine Savings and Keepers Holdings go up and down completely randomly.
Pair Corralation between Philippine Savings and Keepers Holdings
Assuming the 90 days trading horizon Philippine Savings is expected to generate 2.63 times less return on investment than Keepers Holdings. In addition to that, Philippine Savings is 1.01 times more volatile than Keepers Holdings. It trades about 0.03 of its total potential returns per unit of risk. Keepers Holdings is currently generating about 0.09 per unit of volatility. If you would invest 104.00 in Keepers Holdings on September 3, 2024 and sell it today you would earn a total of 99.00 from holding Keepers Holdings or generate 95.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.12% |
| Values | Daily Returns |
Philippine Savings Bank vs. Keepers Holdings
Performance |
| Timeline |
| Philippine Savings Bank |
| Keepers Holdings |
Philippine Savings and Keepers Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philippine Savings and Keepers Holdings
The main advantage of trading using opposite Philippine Savings and Keepers Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philippine Savings position performs unexpectedly, Keepers 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 Keepers Holdings will offset losses from the drop in Keepers Holdings' long position.| Philippine Savings vs. BDO Unibank | Philippine Savings vs. Metropolitan Bank Trust | Philippine Savings vs. Security Bank Corp | Philippine Savings vs. Union Bank of |
| Keepers Holdings vs. Century Pacific Food | Keepers Holdings vs. Suntrust Home Developers | Keepers Holdings vs. Crown Asia Chemicals | Keepers Holdings vs. Transpacific Broadband 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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