Correlation Between BDO Unibank and RL Commercial

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

By analyzing existing cross correlation between BDO Unibank and RL Commercial REIT, you can compare the effects of market volatilities on BDO Unibank and RL 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 BDO Unibank with a short position of RL Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BDO Unibank and RL Commercial.

Diversification Opportunities for BDO Unibank and RL Commercial

0.0

Correlation Coefficient

BDO Unibank  RL Commercial

Pay attention - limited upside

The 3 months correlation between BDO and RCR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BDO Unibank and RL Commercial REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RL Commercial REIT and BDO Unibank 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 BDO Unibank are associated (or correlated) with RL Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RL Commercial REIT has no effect on the direction of BDO Unibank i.e., BDO Unibank and RL Commercial go up and down completely randomly.

Pair Corralation between BDO Unibank and RL Commercial

If you would invest (100.00) in RL Commercial REIT on April 20, 2025 and sell it today you would earn a total of  100.00  from holding RL Commercial REIT or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BDO Unibank  vs.  RL Commercial REIT

BDO Unibank

Risk-Adjusted Performance

Very Weak

Over the last 90 days BDO Unibank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, BDO Unibank is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

RL Commercial REIT

Risk-Adjusted Performance

Very Weak

Over the last 90 days RL Commercial REIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, RL Commercial is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with BDO Unibank and RL Commercial

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

The idea behind BDO Unibank and RL Commercial REIT 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.