Correlation Between Jollibee Foods and THE PHILIPPINE
Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and THE PHILIPPINE 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 THE PHILIPPINE 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 THE PHILIPPINE STOCK, you can compare the effects of market volatilities on Jollibee Foods and THE PHILIPPINE 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 THE PHILIPPINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and THE PHILIPPINE.
Diversification Opportunities for Jollibee Foods and THE PHILIPPINE
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jollibee and THE is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and THE PHILIPPINE STOCK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THE PHILIPPINE STOCK 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 THE PHILIPPINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THE PHILIPPINE STOCK has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and THE PHILIPPINE go up and down completely randomly.
Pair Corralation between Jollibee Foods and THE PHILIPPINE
Assuming the 90 days trading horizon Jollibee Foods Corp is expected to under-perform the THE PHILIPPINE. In addition to that, Jollibee Foods is 2.35 times more volatile than THE PHILIPPINE STOCK. It trades about -0.02 of its total potential returns per unit of risk. THE PHILIPPINE STOCK is currently generating about 0.04 per unit of volatility. If you would invest 619,202 in THE PHILIPPINE STOCK on March 23, 2025 and sell it today you would earn a total of 14,775 from holding THE PHILIPPINE STOCK or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jollibee Foods Corp vs. THE PHILIPPINE STOCK
Performance |
| Timeline |
Jollibee Foods and THE PHILIPPINE Volatility Contrast
Predicted Return Density |
| Returns |
Jollibee Foods Corp
Pair trading matchups for Jollibee Foods
THE PHILIPPINE STOCK
Pair trading matchups for THE PHILIPPINE
Pair Trading with Jollibee Foods and THE PHILIPPINE
The main advantage of trading using opposite Jollibee Foods and THE PHILIPPINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jollibee Foods position performs unexpectedly, THE PHILIPPINE 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 THE PHILIPPINE will offset losses from the drop in THE PHILIPPINE's long position.| Jollibee Foods vs. Top Frontier Investment | Jollibee Foods vs. Globe Telecom | Jollibee Foods vs. Atlas Consolidated Mining | Jollibee Foods vs. Suntrust Home Developers |
| THE PHILIPPINE vs. COL Financial Group | THE PHILIPPINE vs. Converge Information Communications | THE PHILIPPINE vs. Metro Retail Stores | THE PHILIPPINE vs. Jollibee Foods Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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