Correlation Between Jollibee Foods and Dizon Copper

Can any of the company-specific risk be diversified away by investing in both Jollibee Foods and Dizon Copper 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 Dizon Copper 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 Dizon Copper Silver, you can compare the effects of market volatilities on Jollibee Foods and Dizon Copper 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 Dizon Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jollibee Foods and Dizon Copper.

Diversification Opportunities for Jollibee Foods and Dizon Copper

0.01

Correlation Coefficient

Jollibee Foods  Dizon Copper

Significant diversification

The 3 months correlation between Jollibee and Dizon is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Dizon Copper Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dizon Copper Silver 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 Dizon Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dizon Copper Silver has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Dizon Copper go up and down completely randomly.

Pair Corralation between Jollibee Foods and Dizon Copper

Assuming the 90 days trading horizon Jollibee Foods is expected to generate 25.85 times less return on investment than Dizon Copper. But when comparing it to its historical volatility, Jollibee Foods Corp is 3.45 times less risky than Dizon Copper. It trades about 0.01 of its potential returns per unit of risk. Dizon Copper Silver is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  280.00  in Dizon Copper Silver on April 25, 2025 and sell it today you would earn a total of  45.00  from holding Dizon Copper Silver or generate 16.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	71.67%
Values	Daily Returns

Jollibee Foods Corp  vs.  Dizon Copper Silver

Jollibee Foods Corp

Risk-Adjusted Performance

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.

Dizon Copper Silver

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dizon Copper Silver are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Dizon Copper exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jollibee Foods and Dizon Copper

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

The idea behind Jollibee Foods Corp and Dizon Copper Silver 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.