Correlation Between Robinsons Retail and COL Financial
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and COL Financial 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 COL Financial 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 COL Financial Group, you can compare the effects of market volatilities on Robinsons Retail and COL Financial 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 COL Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and COL Financial.
Diversification Opportunities for Robinsons Retail and COL Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Robinsons and COL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and COL Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COL Financial Group 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 COL Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COL Financial Group has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and COL Financial go up and down completely randomly.
Pair Corralation between Robinsons Retail and COL Financial
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to generate 0.63 times more return on investment than COL Financial. However, Robinsons Retail Holdings is 1.59 times less risky than COL Financial. It trades about -0.28 of its potential returns per unit of risk. COL Financial Group is currently generating about -0.31 per unit of risk. If you would invest 3,900 in Robinsons Retail Holdings on September 1, 2024 and sell it today you would lose (320.00) from holding Robinsons Retail Holdings or give up 8.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. COL Financial Group
Performance |
| Timeline |
| Robinsons Retail Holdings |
| COL Financial Group |
Robinsons Retail and COL Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and COL Financial
The main advantage of trading using opposite Robinsons Retail and COL Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, COL Financial 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 COL Financial will offset losses from the drop in COL Financial's long position.| Robinsons Retail vs. Top Frontier Investment | Robinsons Retail vs. Manila Mining Corp | Robinsons Retail vs. Premiere Entertainment | Robinsons Retail vs. Philex Mining Corp |
| COL Financial vs. Bright Kindle Resources | COL Financial vs. Allhome Corp | COL Financial vs. LFM Properties Corp | COL Financial vs. Altus Property Ventures |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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