Correlation Between Robinsons Retail and Benguet Corp
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and Benguet Corp 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 Benguet Corp 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 Benguet Corp A, you can compare the effects of market volatilities on Robinsons Retail and Benguet Corp 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 Benguet Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and Benguet Corp.
Diversification Opportunities for Robinsons Retail and Benguet Corp
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Robinsons and Benguet is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and Benguet Corp A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benguet Corp A 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 Benguet Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benguet Corp A has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and Benguet Corp go up and down completely randomly.
Pair Corralation between Robinsons Retail and Benguet Corp
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to under-perform the Benguet Corp. But the stock apears to be less risky and, when comparing its historical volatility, Robinsons Retail Holdings is 2.58 times less risky than Benguet Corp. The stock trades about -0.2 of its potential returns per unit of risk. The Benguet Corp A is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 384.00 in Benguet Corp A on August 25, 2024 and sell it today you would lose (6.00) from holding Benguet Corp A or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. Benguet Corp A
Performance |
| Timeline |
| Robinsons Retail Holdings |
| Benguet Corp A |
Robinsons Retail and Benguet Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and Benguet Corp
The main advantage of trading using opposite Robinsons Retail and Benguet Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, Benguet Corp 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 Benguet Corp will offset losses from the drop in Benguet Corp's long position.| Robinsons Retail vs. Allhome Corp | Robinsons Retail vs. Jollibee Foods Corp | Robinsons Retail vs. LFM Properties Corp | Robinsons Retail vs. PXP Energy Corp |
| Benguet Corp vs. East West Banking | Benguet Corp vs. Union Bank of | Benguet Corp vs. Converge Information Communications | Benguet Corp vs. Crown Asia Chemicals |
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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