Correlation Between Robinsons Retail and Swift Foods
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and Swift Foods 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 Swift Foods 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 Swift Foods, you can compare the effects of market volatilities on Robinsons Retail and Swift Foods 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 Swift Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and Swift Foods.
Diversification Opportunities for Robinsons Retail and Swift Foods
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Robinsons and Swift is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and Swift Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Foods 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 Swift Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Foods has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and Swift Foods go up and down completely randomly.
Pair Corralation between Robinsons Retail and Swift Foods
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to under-perform the Swift Foods. But the stock apears to be less risky and, when comparing its historical volatility, Robinsons Retail Holdings is 4.44 times less risky than Swift Foods. The stock trades about -0.26 of its potential returns per unit of risk. The Swift Foods is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5.90 in Swift Foods on August 29, 2024 and sell it today you would lose (0.40) from holding Swift Foods or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. Swift Foods
Performance |
| Timeline |
| Robinsons Retail Holdings |
| Swift Foods |
Robinsons Retail and Swift Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and Swift Foods
The main advantage of trading using opposite Robinsons Retail and Swift Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, Swift Foods 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 Swift Foods will offset losses from the drop in Swift Foods' long position.| Robinsons Retail vs. Lepanto Consolidated Mining | Robinsons Retail vs. Atlas Consolidated Mining | Robinsons Retail vs. Apex Mining Co | Robinsons Retail vs. Union Bank of |
| Swift Foods vs. Integrated Micro Electronics | Swift Foods vs. Semirara Mining Corp | Swift Foods vs. Robinsons Retail Holdings | Swift Foods vs. Philex Mining 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |