Correlation Between Benguet Corp and Robinsons Retail

Can any of the company-specific risk be diversified away by investing in both Benguet Corp 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 Benguet Corp and Robinsons Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Benguet Corp A and Robinsons Retail Holdings, you can compare the effects of market volatilities on Benguet Corp 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 Benguet Corp with a short position of Robinsons Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benguet Corp and Robinsons Retail.

Diversification Opportunities for Benguet Corp and Robinsons Retail

0.22

Correlation Coefficient

Benguet Corp  Robinsons Retail

Modest diversification

The 3 months correlation between Benguet and Robinsons is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Benguet Corp A 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 Benguet Corp 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 Benguet Corp A 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 Benguet Corp i.e., Benguet Corp and Robinsons Retail go up and down completely randomly.

Pair Corralation between Benguet Corp and Robinsons Retail

Assuming the 90 days trading horizon Benguet Corp A is expected to generate 1.71 times more return on investment than Robinsons Retail. However, Benguet Corp is 1.71 times more volatile than Robinsons Retail Holdings. It trades about 0.2 of its potential returns per unit of risk. Robinsons Retail Holdings is currently generating about 0.0 per unit of risk. If you would invest  362.00  in Benguet Corp A on October 6, 2024 and sell it today you would earn a total of  28.00  from holding Benguet Corp A or generate 7.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	82.35%
Values	Daily Returns

Benguet Corp A  vs.  Robinsons Retail Holdings

Benguet Corp A

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Benguet Corp A are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Benguet Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Robinsons Retail Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robinsons Retail Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Benguet Corp and Robinsons Retail

The main advantage of trading using opposite Benguet Corp and Robinsons Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benguet Corp 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.

The idea behind Benguet Corp A and Robinsons Retail Holdings 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..