Correlation Between Ayala Land and PHINMA Corp

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

By analyzing existing cross correlation between Ayala Land and PHINMA Corp, you can compare the effects of market volatilities on Ayala Land and PHINMA Corp 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 PHINMA Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayala Land and PHINMA Corp.

Diversification Opportunities for Ayala Land and PHINMA Corp

0.1

Correlation Coefficient

Ayala Land  PHINMA Corp

Average diversification

The 3 months correlation between Ayala and PHINMA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ayala Land and PHINMA Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHINMA Corp 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 PHINMA Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHINMA Corp has no effect on the direction of Ayala Land i.e., Ayala Land and PHINMA Corp go up and down completely randomly.

Pair Corralation between Ayala Land and PHINMA Corp

Assuming the 90 days trading horizon Ayala Land is expected to generate 1.22 times more return on investment than PHINMA Corp. However, Ayala Land is 1.22 times more volatile than PHINMA Corp. It trades about 0.06 of its potential returns per unit of risk. PHINMA Corp is currently generating about 0.04 per unit of risk. If you would invest  2,440  in Ayala Land on April 22, 2025 and sell it today you would earn a total of  155.00  from holding Ayala Land or generate 6.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	67.21%
Values	Daily Returns

Ayala Land  vs.  PHINMA Corp

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.

PHINMA Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PHINMA Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, PHINMA Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ayala Land and PHINMA Corp

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

The idea behind Ayala Land and PHINMA Corp 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.

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 CEOs Directory module to screen CEOs from public companies around the world.