Correlation Between Robinsons Retail and International Container
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and International Container 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 International Container 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 International Container Terminal, you can compare the effects of market volatilities on Robinsons Retail and International Container 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 International Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and International Container.
Diversification Opportunities for Robinsons Retail and International Container
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Robinsons and International is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and International Container Termin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Container 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 International Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Container has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and International Container go up and down completely randomly.
Pair Corralation between Robinsons Retail and International Container
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to under-perform the International Container. But the stock apears to be less risky and, when comparing its historical volatility, Robinsons Retail Holdings is 2.4 times less risky than International Container. The stock trades about -0.19 of its potential returns per unit of risk. The International Container Terminal is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 39,000 in International Container Terminal on September 12, 2024 and sell it today you would lose (200.00) from holding International Container Terminal or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. International Container Termin
Performance |
| Timeline |
| Robinsons Retail Holdings |
| International Container |
Robinsons Retail and International Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and International Container
The main advantage of trading using opposite Robinsons Retail and International Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, International Container 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 International Container will offset losses from the drop in International Container's long position.| Robinsons Retail vs. GT Capital Holdings | Robinsons Retail vs. Allhome Corp | Robinsons Retail vs. Jollibee Foods Corp | Robinsons Retail vs. LFM Properties 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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