Correlation Between Ayala Land and Altus Property

Can any of the company-specific risk be diversified away by investing in both Ayala Land and Altus Property 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 Ayala Land and Altus Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ayala Land and Altus Property Ventures, you can compare the effects of market volatilities on Ayala Land and Altus Property 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 Ayala Land with a short position of Altus Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayala Land and Altus Property.

Diversification Opportunities for Ayala Land and Altus Property

0.37

Correlation Coefficient

Ayala Land  Altus Property

Weak diversification

The 3 months correlation between Ayala and Altus is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ayala Land and Altus Property Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altus Property Ventures and Ayala Land 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 Ayala Land are associated (or correlated) with Altus Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altus Property Ventures has no effect on the direction of Ayala Land i.e., Ayala Land and Altus Property go up and down completely randomly.

Pair Corralation between Ayala Land and Altus Property

Assuming the 90 days trading horizon Ayala Land is expected to generate 0.66 times more return on investment than Altus Property. However, Ayala Land is 1.53 times less risky than Altus Property. It trades about 0.06 of its potential returns per unit of risk. Altus Property Ventures is currently generating about 0.04 per unit of risk. If you would invest  2,470  in Ayala Land on April 24, 2025 and sell it today you would earn a total of  160.00  from holding Ayala Land or generate 6.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	80.0%
Values	Daily Returns

Ayala Land  vs.  Altus Property Ventures

Ayala Land

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ayala Land are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Ayala Land may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Altus Property Ventures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Altus Property Ventures are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Altus Property may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Ayala Land and Altus Property

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

The idea behind Ayala Land and Altus Property Ventures 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.