Correlation Between Benguet Corp and Rizal Commercial

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

By analyzing existing cross correlation between Benguet Corp A and Rizal Commercial Banking, you can compare the effects of market volatilities on Benguet Corp and Rizal Commercial 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 Benguet Corp with a short position of Rizal Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benguet Corp and Rizal Commercial.

Diversification Opportunities for Benguet Corp and Rizal Commercial

-0.34

Correlation Coefficient

Benguet Corp  Rizal Commercial

Very good diversification

The 3 months correlation between Benguet and Rizal is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Benguet Corp A and Rizal Commercial Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rizal Commercial Banking and Benguet Corp 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 Benguet Corp A are associated (or correlated) with Rizal Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rizal Commercial Banking has no effect on the direction of Benguet Corp i.e., Benguet Corp and Rizal Commercial go up and down completely randomly.

Pair Corralation between Benguet Corp and Rizal Commercial

Assuming the 90 days trading horizon Benguet Corp A is expected to generate 1.06 times more return on investment than Rizal Commercial. However, Benguet Corp is 1.06 times more volatile than Rizal Commercial Banking. It trades about 0.08 of its potential returns per unit of risk. Rizal Commercial Banking is currently generating about 0.01 per unit of risk. If you would invest  415.00  in Benguet Corp A on April 24, 2025 and sell it today you would earn a total of  22.00  from holding Benguet Corp A or generate 5.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	78.33%
Values	Daily Returns

Benguet Corp A  vs.  Rizal Commercial Banking

Benguet Corp A

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Benguet Corp A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Benguet Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Rizal Commercial Banking

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rizal Commercial Banking are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Rizal Commercial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Benguet Corp and Rizal Commercial

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

The idea behind Benguet Corp A and Rizal Commercial Banking 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..