Correlation Between VistaREIT and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both VistaREIT 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 VistaREIT and Jollibee Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VistaREIT and Jollibee Foods Corp, you can compare the effects of market volatilities on VistaREIT 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 VistaREIT with a short position of Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of VistaREIT and Jollibee Foods.
Diversification Opportunities for VistaREIT and Jollibee Foods
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VistaREIT and Jollibee is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding VistaREIT 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 VistaREIT 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 VistaREIT 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 VistaREIT i.e., VistaREIT and Jollibee Foods go up and down completely randomly.
Pair Corralation between VistaREIT and Jollibee Foods
Assuming the 90 days trading horizon VistaREIT is expected to generate 0.39 times more return on investment than Jollibee Foods. However, VistaREIT is 2.59 times less risky than Jollibee Foods. It trades about 0.07 of its potential returns per unit of risk. Jollibee Foods Corp is currently generating about -0.04 per unit of risk. If you would invest 177.00 in VistaREIT on September 1, 2024 and sell it today you would earn a total of 2.00 from holding VistaREIT or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VistaREIT vs. Jollibee Foods Corp
Performance |
| Timeline |
| VistaREIT |
| Jollibee Foods Corp |
VistaREIT and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VistaREIT and Jollibee Foods
The main advantage of trading using opposite VistaREIT and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VistaREIT 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.| VistaREIT vs. Bright Kindle Resources | VistaREIT vs. Allhome Corp | VistaREIT vs. LFM Properties Corp | VistaREIT vs. Altus Property Ventures |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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