Correlation Between Robinsons Retail and LFM Properties
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and LFM Properties 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 LFM Properties 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 LFM Properties Corp, you can compare the effects of market volatilities on Robinsons Retail and LFM Properties 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 LFM Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and LFM Properties.
Diversification Opportunities for Robinsons Retail and LFM Properties
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Robinsons and LFM is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and LFM Properties Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LFM Properties Corp 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 LFM Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LFM Properties Corp has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and LFM Properties go up and down completely randomly.
Pair Corralation between Robinsons Retail and LFM Properties
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to generate 0.22 times more return on investment than LFM Properties. However, Robinsons Retail Holdings is 4.48 times less risky than LFM Properties. It trades about -0.2 of its potential returns per unit of risk. LFM Properties Corp is currently generating about -0.05 per unit of risk. If you would invest 3,910 in Robinsons Retail Holdings on August 25, 2024 and sell it today you would lose (240.00) from holding Robinsons Retail Holdings or give up 6.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. LFM Properties Corp
Performance |
| Timeline |
| Robinsons Retail Holdings |
| LFM Properties Corp |
Robinsons Retail and LFM Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and LFM Properties
The main advantage of trading using opposite Robinsons Retail and LFM Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, LFM Properties 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 LFM Properties will offset losses from the drop in LFM Properties' 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 |
| LFM Properties vs. SM Investments Corp | LFM Properties vs. San Miguel Pure | LFM Properties vs. Ayala Corp | LFM Properties vs. BDO Unibank |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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