Correlation Between Jollibee Foods and Bright Kindle

Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Bright Kindle 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 Jollibee Foods and Bright Kindle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jollibee Foods Corp and Bright Kindle Resources, you can compare the effects of market volatilities on Jollibee Foods and Bright Kindle 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 Jollibee Foods with a short position of Bright Kindle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Bright Kindle.

Diversification Opportunities for Jollibee Foods and Bright Kindle

0.35

Correlation Coefficient

Jollibee Foods  Bright Kindle

Weak diversification

The 3 months correlation between Jollibee and Bright is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Bright Kindle Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Kindle Resources and Jollibee Foods 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 Jollibee Foods Corp are associated (or correlated) with Bright Kindle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Kindle Resources has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Bright Kindle go up and down completely randomly.

Pair Corralation between Jollibee Foods and Bright Kindle

Assuming the 90 days trading horizon Jollibee Foods Corp is expected to under-perform the Bright Kindle. But the stock apears to be less risky and, when comparing its historical volatility, Jollibee Foods Corp is 2.38 times less risky than Bright Kindle. The stock trades about 0.0 of its potential returns per unit of risk. The Bright Kindle Resources is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  105.00  in Bright Kindle Resources on April 21, 2025 and sell it today you would lose (29.00) from holding Bright Kindle Resources or give up 27.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	91.25%
Values	Daily Returns

Jollibee Foods Corp  vs.  Bright Kindle Resources

Jollibee Foods Corp

Risk-Adjusted Performance

Very Weak

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

Bright Kindle Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bright Kindle Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Jollibee Foods and Bright Kindle

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

The idea behind Jollibee Foods Corp and Bright Kindle Resources 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.