Correlation Between ABS-CBN Holdings and EBullion

Can any of the company-specific risk be diversified away by investing in both ABS-CBN Holdings and EBullion 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 ABS-CBN Holdings and EBullion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ABS CBN Holdings and EBullion, you can compare the effects of market volatilities on ABS-CBN Holdings and EBullion 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 ABS-CBN Holdings with a short position of EBullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABS-CBN Holdings and EBullion.

Diversification Opportunities for ABS-CBN Holdings and EBullion

0.0

Correlation Coefficient

ABS-CBN Holdings  EBullion

Pay attention - limited upside

The 3 months correlation between ABS-CBN and EBullion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ABS CBN Holdings and EBullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBullion and ABS-CBN Holdings 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 ABS CBN Holdings are associated (or correlated) with EBullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBullion has no effect on the direction of ABS-CBN Holdings i.e., ABS-CBN Holdings and EBullion go up and down completely randomly.

Pair Corralation between ABS-CBN Holdings and EBullion

If you would invest (100.00) in EBullion on December 30, 2024 and sell it today you would earn a total of  100.00  from holding EBullion or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ABS CBN Holdings  vs.  EBullion

ABS CBN Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ABS CBN Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ABS-CBN Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

EBullion

Risk-Adjusted Performance

Very Weak

Over the last 90 days EBullion has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, EBullion is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with ABS-CBN Holdings and EBullion

The main advantage of trading using opposite ABS-CBN Holdings and EBullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABS-CBN Holdings position performs unexpectedly, EBullion 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 EBullion will offset losses from the drop in EBullion's long position.

The idea behind ABS CBN Holdings and EBullion pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.