Correlation Between Lopez Holdings and Robinsons Land

Can any of the company-specific risk be diversified away by investing in both Lopez Holdings and Robinsons Land 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 Lopez Holdings and Robinsons Land into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lopez Holdings Corp and Robinsons Land Corp, you can compare the effects of market volatilities on Lopez Holdings and Robinsons Land 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 Lopez Holdings with a short position of Robinsons Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lopez Holdings and Robinsons Land.

Diversification Opportunities for Lopez Holdings and Robinsons Land

0.92

Correlation Coefficient

Lopez Holdings  Robinsons Land

Almost no diversification

The 3 months correlation between Lopez and Robinsons is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lopez Holdings Corp and Robinsons Land Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Land Corp and Lopez Holdings 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 Lopez Holdings Corp are associated (or correlated) with Robinsons Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Land Corp has no effect on the direction of Lopez Holdings i.e., Lopez Holdings and Robinsons Land go up and down completely randomly.

Pair Corralation between Lopez Holdings and Robinsons Land

Assuming the 90 days trading horizon Lopez Holdings Corp is expected to generate 1.42 times more return on investment than Robinsons Land. However, Lopez Holdings is 1.42 times more volatile than Robinsons Land Corp. It trades about 0.27 of its potential returns per unit of risk. Robinsons Land Corp is currently generating about 0.25 per unit of risk. If you would invest  269.00  in Lopez Holdings Corp on April 24, 2025 and sell it today you would earn a total of  135.00  from holding Lopez Holdings Corp or generate 50.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.0%
Values	Daily Returns

Lopez Holdings Corp  vs.  Robinsons Land Corp

Lopez Holdings Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lopez Holdings Corp are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Lopez Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Robinsons Land Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Robinsons Land Corp are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Robinsons Land exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lopez Holdings and Robinsons Land

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

The idea behind Lopez Holdings Corp and Robinsons Land Corp 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.