Correlation Between Jollibee Foods and Manila Bulletin

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

Diversification Opportunities for Jollibee Foods and Manila Bulletin

-0.06

Correlation Coefficient

Jollibee Foods  Manila Bulletin

Good diversification

The 3 months correlation between Jollibee and Manila is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jollibee Foods Corp and Manila Bulletin Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Bulletin Publ 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 Manila Bulletin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Bulletin Publ has no effect on the direction of Jollibee Foods i.e., Jollibee Foods and Manila Bulletin go up and down completely randomly.

Pair Corralation between Jollibee Foods and Manila Bulletin

Assuming the 90 days trading horizon Jollibee Foods is expected to generate 2.75 times less return on investment than Manila Bulletin. But when comparing it to its historical volatility, Jollibee Foods Corp is 2.28 times less risky than Manila Bulletin. It trades about 0.02 of its potential returns per unit of risk. Manila Bulletin Publishing is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  20.00  in Manila Bulletin Publishing on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Manila Bulletin Publishing or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	43.33%
Values	Daily Returns

Jollibee Foods Corp  vs.  Manila Bulletin Publishing

Jollibee Foods Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jollibee Foods Corp 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, Jollibee Foods is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Manila Bulletin Publ

Risk-Adjusted Performance

Weak

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

Pair Trading with Jollibee Foods and Manila Bulletin

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

The idea behind Jollibee Foods Corp and Manila Bulletin Publishing 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.