Correlation Between Swift Foods and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both Swift Foods and Jollibee 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 Swift Foods and Jollibee Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swift Foods and Jollibee Foods Corp, you can compare the effects of market volatilities on Swift Foods and Jollibee 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 Swift Foods with a short position of Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Foods and Jollibee Foods.
Diversification Opportunities for Swift Foods and Jollibee Foods
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Swift and Jollibee is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Swift Foods and Jollibee Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods Corp and Swift Foods 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 Swift Foods are associated (or correlated) with Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods Corp has no effect on the direction of Swift Foods i.e., Swift Foods and Jollibee Foods go up and down completely randomly.
Pair Corralation between Swift Foods and Jollibee Foods
Assuming the 90 days trading horizon Swift Foods is expected to generate 3.06 times more return on investment than Jollibee Foods. However, Swift Foods is 3.06 times more volatile than Jollibee Foods Corp. It trades about 0.01 of its potential returns per unit of risk. Jollibee Foods Corp is currently generating about 0.02 per unit of risk. If you would invest 6.40 in Swift Foods on September 1, 2024 and sell it today you would lose (0.60) from holding Swift Foods or give up 9.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.98% |
| Values | Daily Returns |
Swift Foods vs. Jollibee Foods Corp
Performance |
| Timeline |
| Swift Foods |
| Jollibee Foods Corp |
Swift Foods and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Foods and Jollibee Foods
The main advantage of trading using opposite Swift Foods and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Foods position performs unexpectedly, Jollibee 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| Swift Foods vs. Metro Retail Stores | Swift Foods vs. Century Pacific Food | Swift Foods vs. Manila Mining Corp | Swift Foods vs. Apex Mining Co |
| Jollibee Foods vs. Metropolitan Bank Trust | Jollibee Foods vs. Philex Mining Corp | Jollibee Foods vs. Top Frontier Investment | Jollibee Foods 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |