Correlation Between THE PHILIPPINE and AyalaLand REIT
Can any of the company-specific risk be diversified away by investing in both THE PHILIPPINE and AyalaLand REIT 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 THE PHILIPPINE and AyalaLand REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THE PHILIPPINE STOCK and AyalaLand REIT, you can compare the effects of market volatilities on THE PHILIPPINE and AyalaLand REIT 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 THE PHILIPPINE with a short position of AyalaLand REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of THE PHILIPPINE and AyalaLand REIT.
Diversification Opportunities for THE PHILIPPINE and AyalaLand REIT
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THE and AyalaLand is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding THE PHILIPPINE STOCK and AyalaLand REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AyalaLand REIT and THE PHILIPPINE 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 THE PHILIPPINE STOCK are associated (or correlated) with AyalaLand REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AyalaLand REIT has no effect on the direction of THE PHILIPPINE i.e., THE PHILIPPINE and AyalaLand REIT go up and down completely randomly.
Pair Corralation between THE PHILIPPINE and AyalaLand REIT
Assuming the 90 days trading horizon THE PHILIPPINE STOCK is expected to under-perform the AyalaLand REIT. But the index apears to be less risky and, when comparing its historical volatility, THE PHILIPPINE STOCK is 1.35 times less risky than AyalaLand REIT. The index trades about -0.06 of its potential returns per unit of risk. The AyalaLand REIT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,788 in AyalaLand REIT on September 2, 2024 and sell it today you would earn a total of 197.00 from holding AyalaLand REIT or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THE PHILIPPINE STOCK vs. AyalaLand REIT
Performance |
| Timeline |
THE PHILIPPINE and AyalaLand REIT Volatility Contrast
Predicted Return Density |
| Returns |
THE PHILIPPINE STOCK
Pair trading matchups for THE PHILIPPINE
AyalaLand REIT
Pair trading matchups for AyalaLand REIT
Pair Trading with THE PHILIPPINE and AyalaLand REIT
The main advantage of trading using opposite THE PHILIPPINE and AyalaLand REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THE PHILIPPINE position performs unexpectedly, AyalaLand REIT 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 AyalaLand REIT will offset losses from the drop in AyalaLand REIT's long position.| THE PHILIPPINE vs. Transpacific Broadband Group | THE PHILIPPINE vs. Apex Mining Co | THE PHILIPPINE vs. Cebu Air Preferred | THE PHILIPPINE vs. Manila Mining Corp |
| AyalaLand REIT vs. Allhome Corp | AyalaLand REIT vs. LFM Properties Corp | AyalaLand REIT vs. Altus Property Ventures | AyalaLand REIT vs. Monde Nissin 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance |