Correlation Between Jollibee Foods and Apex Mining
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Apex Mining 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 Jollibee Foods and Apex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jollibee Foods Corp and Apex Mining Co, you can compare the effects of market volatilities on Jollibee Foods and Apex Mining 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 Jollibee Foods with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Apex Mining.
Diversification Opportunities for Jollibee Foods and Apex Mining
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jollibee and Apex is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Jollibee Foods 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 Jollibee Foods Corp are associated (or correlated) with Apex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Mining has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Apex Mining go up and down completely randomly.
Pair Corralation between Jollibee Foods and Apex Mining
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to under-perform the Apex Mining. In addition to that, Jollibee Foods is 1.25 times more volatile than Apex Mining Co. It trades about -0.01 of its total potential returns per unit of risk. Apex Mining Co is currently generating about 0.12 per unit of volatility. If you would invest 352.00 in Apex Mining Co on December 1, 2024 and sell it today you would earn a total of 49.00 from holding Apex Mining Co or generate 13.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jollibee Foods Corp vs. Apex Mining Co
Performance |
Timeline |
Jollibee Foods Corp |
Apex Mining |
Jollibee Foods and Apex Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jollibee Foods and Apex Mining
The main advantage of trading using opposite Jollibee Foods and Apex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, Apex Mining 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 Apex Mining will offset losses from the drop in Apex Mining's long position.Jollibee Foods vs. Apex Mining Co | Jollibee Foods vs. East West Banking | Jollibee Foods vs. Swift Foods | Jollibee Foods vs. Metro Retail Stores |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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