Correlation Between Berjaya Philippines and Robinsons Retail

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

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

Diversification Opportunities for Berjaya Philippines and Robinsons Retail

0.0

Correlation Coefficient

Berjaya Philippines  Robinsons Retail

Pay attention - limited upside

The 3 months correlation between Berjaya and Robinsons is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Berjaya Philippines 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 Berjaya Philippines 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 Berjaya Philippines 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 Berjaya Philippines i.e., Berjaya Philippines and Robinsons Retail go up and down completely randomly.

Pair Corralation between Berjaya Philippines and Robinsons Retail

If you would invest  3,590  in Robinsons Retail Holdings on October 6, 2024 and sell it today you would lose (5.00) from holding Robinsons Retail Holdings or give up 0.14% of portfolio value over 90 days.

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

Berjaya Philippines  vs.  Robinsons Retail Holdings

Berjaya Philippines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Berjaya Philippines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Berjaya Philippines is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 Berjaya Philippines and Robinsons Retail

The main advantage of trading using opposite Berjaya Philippines and Robinsons Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berjaya Philippines 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 Berjaya Philippines 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 Stocks Directory module to find actively traded stocks across global markets.