Correlation Between Security Bank and AyalaLand Logistics

Can any of the company-specific risk be diversified away by investing in both Security Bank and AyalaLand Logistics 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 Security Bank and AyalaLand Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Security Bank and AyalaLand Logistics

0.52

Correlation Coefficient

Security Bank  AyalaLand Logistics

Very weak diversification

The 3 months correlation between Security and AyalaLand is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Security Bank Corp and AyalaLand Logistics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AyalaLand Logistics and Security Bank 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 Security Bank Corp are associated (or correlated) with AyalaLand Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AyalaLand Logistics has no effect on the direction of Security Bank i.e., Security Bank and AyalaLand Logistics go up and down completely randomly.

Pair Corralation between Security Bank and AyalaLand Logistics

Assuming the 90 days trading horizon Security Bank Corp is expected to generate 0.59 times more return on investment than AyalaLand Logistics. However, Security Bank Corp is 1.69 times less risky than AyalaLand Logistics. It trades about 0.0 of its potential returns per unit of risk. AyalaLand Logistics Holdings is currently generating about -0.03 per unit of risk. If you would invest  8,973  in Security Bank Corp on October 7, 2024 and sell it today you would lose (623.00) from holding Security Bank Corp or give up 6.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Security Bank Corp  vs.  AyalaLand Logistics Holdings

Security Bank Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Security Bank Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak 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.

AyalaLand Logistics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AyalaLand Logistics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's essential indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Security Bank and AyalaLand Logistics

The main advantage of trading using opposite Security Bank and AyalaLand Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security Bank position performs unexpectedly, AyalaLand Logistics 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 AyalaLand Logistics will offset losses from the drop in AyalaLand Logistics' long position.

The idea behind Security Bank Corp and AyalaLand Logistics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.