Correlation Between Union Bank and Robinsons Retail
Can any of the company-specific risk be diversified away by investing in both Union Bank and Robinsons Retail 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 Union Bank and Robinsons Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Bank of and Robinsons Retail Holdings, you can compare the effects of market volatilities on Union Bank and Robinsons Retail 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 Union Bank with a short position of Robinsons Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and Robinsons Retail.
Diversification Opportunities for Union Bank and Robinsons Retail
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and Robinsons is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank of and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail Holdings and Union Bank 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 Union Bank of are associated (or correlated) with Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Union Bank i.e., Union Bank and Robinsons Retail go up and down completely randomly.
Pair Corralation between Union Bank and Robinsons Retail
Assuming the 90 days trading horizon Union Bank of is expected to generate 1.19 times more return on investment than Robinsons Retail. However, Union Bank is 1.19 times more volatile than Robinsons Retail Holdings. It trades about -0.16 of its potential returns per unit of risk. Robinsons Retail Holdings is currently generating about -0.25 per unit of risk. If you would invest 3,895 in Union Bank of on August 29, 2024 and sell it today you would lose (245.00) from holding Union Bank of or give up 6.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Bank of vs. Robinsons Retail Holdings
Performance |
| Timeline |
| Union Bank |
| Robinsons Retail Holdings |
Union Bank and Robinsons Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and Robinsons Retail
The main advantage of trading using opposite Union Bank and Robinsons Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank position performs unexpectedly, Robinsons Retail 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 Robinsons Retail will offset losses from the drop in Robinsons Retail's long position.| Union Bank vs. Apex Mining Co | Union Bank vs. Suntrust Home Developers | Union Bank vs. SM Investments Corp | Union Bank vs. Philex Mining Corp |
| Robinsons Retail vs. Manila Mining Corp | Robinsons Retail vs. Top Frontier Investment | Robinsons Retail vs. Atlas Consolidated Mining | Robinsons Retail vs. Converge Information Communications |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |