Correlation Between Metro Retail and Filinvest REIT
Can any of the company-specific risk be diversified away by investing in both Metro Retail and Filinvest REIT 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 Metro Retail and Filinvest REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metro Retail Stores and Filinvest REIT Corp, you can compare the effects of market volatilities on Metro Retail and Filinvest REIT 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 Metro Retail with a short position of Filinvest REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Retail and Filinvest REIT.
Diversification Opportunities for Metro Retail and Filinvest REIT
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Metro and Filinvest is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Metro Retail Stores and Filinvest REIT Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filinvest REIT Corp and Metro Retail 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 Metro Retail Stores are associated (or correlated) with Filinvest REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filinvest REIT Corp has no effect on the direction of Metro Retail i.e., Metro Retail and Filinvest REIT go up and down completely randomly.
Pair Corralation between Metro Retail and Filinvest REIT
Assuming the 90 days trading horizon Metro Retail Stores is expected to generate 0.96 times more return on investment than Filinvest REIT. However, Metro Retail Stores is 1.04 times less risky than Filinvest REIT. It trades about 0.06 of its potential returns per unit of risk. Filinvest REIT Corp is currently generating about -0.11 per unit of risk. If you would invest 115.00 in Metro Retail Stores on September 23, 2024 and sell it today you would earn a total of 5.00 from holding Metro Retail Stores or generate 4.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.92% |
Values | Daily Returns |
Metro Retail Stores vs. Filinvest REIT Corp
Performance |
Timeline |
Metro Retail Stores |
Filinvest REIT Corp |
Metro Retail and Filinvest REIT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metro Retail and Filinvest REIT
The main advantage of trading using opposite Metro Retail and Filinvest REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Retail position performs unexpectedly, Filinvest REIT 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 Filinvest REIT will offset losses from the drop in Filinvest REIT's long position.Metro Retail vs. House of Investments | Metro Retail vs. Lepanto Consolidated Mining | Metro Retail vs. Crown Asia Chemicals | Metro Retail vs. Pacificonline Systems |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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