Correlation Between Robinsons Retail and PXP Energy
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and PXP Energy 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 PXP Energy 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 PXP Energy Corp, you can compare the effects of market volatilities on Robinsons Retail and PXP Energy 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 PXP Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and PXP Energy.
Diversification Opportunities for Robinsons Retail and PXP Energy
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Robinsons and PXP is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and PXP Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PXP Energy 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 PXP Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PXP Energy Corp has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and PXP Energy go up and down completely randomly.
Pair Corralation between Robinsons Retail and PXP Energy
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to under-perform the PXP Energy. But the stock apears to be less risky and, when comparing its historical volatility, Robinsons Retail Holdings is 2.7 times less risky than PXP Energy. The stock trades about -0.04 of its potential returns per unit of risk. The PXP Energy Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 338.00 in PXP Energy Corp on August 25, 2024 and sell it today you would lose (48.00) from holding PXP Energy Corp or give up 14.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. PXP Energy Corp
Performance |
| Timeline |
| Robinsons Retail Holdings |
| PXP Energy Corp |
Robinsons Retail and PXP Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and PXP Energy
The main advantage of trading using opposite Robinsons Retail and PXP Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, PXP Energy 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 PXP Energy will offset losses from the drop in PXP Energy'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 |
| PXP Energy vs. SM Investments Corp | PXP Energy vs. San Miguel Pure | PXP Energy vs. Ayala Corp | PXP Energy vs. Ayala Land |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |