Correlation Between Robinsons Retail and Asia United
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and Asia United 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 Robinsons Retail and Asia United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinsons Retail Holdings and Asia United Bank, you can compare the effects of market volatilities on Robinsons Retail and Asia United 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 Robinsons Retail with a short position of Asia United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and Asia United.
Diversification Opportunities for Robinsons Retail and Asia United
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Robinsons and Asia is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and Asia United Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia United Bank and Robinsons Retail 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 Robinsons Retail Holdings are associated (or correlated) with Asia United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia United Bank has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and Asia United go up and down completely randomly.
Pair Corralation between Robinsons Retail and Asia United
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to under-perform the Asia United. But the stock apears to be less risky and, when comparing its historical volatility, Robinsons Retail Holdings is 1.09 times less risky than Asia United. The stock trades about -0.04 of its potential returns per unit of risk. The Asia United Bank is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,460 in Asia United Bank on September 3, 2024 and sell it today you would earn a total of 3,790 from holding Asia United Bank or generate 154.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.95% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. Asia United Bank
Performance |
| Timeline |
| Robinsons Retail Holdings |
| Asia United Bank |
Robinsons Retail and Asia United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and Asia United
The main advantage of trading using opposite Robinsons Retail and Asia United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, Asia United 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 Asia United will offset losses from the drop in Asia United's long position.| Robinsons Retail vs. Philex Mining Corp | Robinsons Retail vs. Integrated Micro Electronics | Robinsons Retail vs. Converge Information Communications | Robinsons Retail vs. Philippine Savings Bank |
| Asia United vs. BDO Unibank | Asia United vs. Metropolitan Bank Trust | Asia United vs. Security Bank Corp | Asia United vs. Union Bank of |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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